Fusiones

British Airways, Iberia say merger good for passengers
ASSOCIATED PRESS
Posted: 11/13/2009 09:57:30 AM PST
Updated: 11/13/2009 09:57:31 AM PST
LONDON — British Airways PLC and Spain's Iberia SAtalked up the benefits of a proposed $7 billion merger on Friday, dismissing criticisms that the deal could increase fares, reduce competition and drag down service standards at Britain's flagshipcarrier.
The agreement ends more than a year of talks between BA and Iberia aimed at finding a way for the two loss-making carriers to share resources amid slumping demand for air travel.
But while theyargued that combining BA's North American routes with Iberia's Latin America services would be good for shareholders and travelers alike, there were questions about BA's growing dominance given itsalso waiting for the green light on a tie-up with American Airlines.
Unions also warned that they were not prepared to back the merger, which the airlines aim to close by late 2010, withoutcommitments to avoid layoffs.
Under the preliminary deal signed off by the BA and Iberia boards late Thursday, the two carriers will continue as separate brands and operating divisions under a holding companyregistered in Madrid but with its main offices and primary stock exchange listing in London.
BA will take the majority 55 percent stake in the holding company, TopCo — Walsh suggested theunimaginative name would likely be changed over the coming year — with Iberia holding the remaining 45 percent.
"This is good news for BA, our customers and our shareholders," said BA
Chief Executive WillieWalsh, who will take the same position at the combined company. "We recognize we have strong brands and these will be retained."
Walsh also dismissed suggestions that fares would increase on someroutes, like the London to Madrid service both airlines already operate, as "total nonsense."
The combined company would consolidate BA's rank as Europe's third largest airline behind Germany's...