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BA, Iberia get EU merger approval

07-15-2010 09:37 BJT

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British Airways and Iberia have won the European Union's regulatory approval for their merger.

Meanwhile, the European Commission has allowed the new company, to team up with American Airlines... to share more of their lucrative trans-Atlantic routes.

The European Commission says it has no antitrust concerns with British Airways and Iberia merging, since they don't compete directly on many routes and would continue to face rivalry.

Joaquin Almunia, EU Competition Commissioner, said, "We have concluded that the remedies introduced by the airlines will secure for passengers the benefits of the alliance, together with the prospect of additional services provided by other operators."

The merger of BA and Iberia will create Europe's third-largest airline with a market value of around 7.5 billion US dollars.

And the deal will create savings of 400 million euros a year by the fifth year.

BA and Iberia have also received approval by the European Commission to expand their one-world alliance with American Airlines, which coordinates how they sell and operate flights between the 27-nation EU and the US.

The three airlines will jointly manage schedules, capacity and pricing on flights from Canada, Mexico, Puerto Rico, Norway and Switzerland as well.

BA and Iberia are expecting the US Department of Transportation to clear the deal shortly, allowing the airlines to start the joint business in the autumn.

 

Editor:Zhang Pengfei |Source: CNTV.CN

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