08 April 2010

Mega Airlines Inc - aka BA+IB

The 2 airlines have finally sealed their deal. Newly emboldened BA (despite some heavy losses during the 2 strikes over the Easter Holidays) has signed on its definitive agreement with Spanish airline Iberia.

The share ownership will be 55/45 in favour of BA. There is still one get out of jail free card - this is if BA fails by June 30th to conclude their agreements to resolve the somewhat large pension deficit issue. Despite securing agreements with the unions this is by no means a sure thing. There is a small issue of the amount of cash that the fund is deficient by....

So things are looking up for the new airline group. Let's see what the EU regulators say to the deal. They still have to rule.

The merger should be completed officially by the end of the year and full integration (except for the brands) is targeted for about 5 years.


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