Iberia and British Airways have signed a definitive merger agreement and both will now submit the proposal to their respective shareholders for approval.
The merger of the two companies, scheduled at the end of 2010, would create one of the world’s largest airlines with a fleet of 408 aircraft flying to 200 destinations.
A new holding company will be created, International Consolidated Airlines Group, which would be known publicly as International Airlines Group, although both British Airways and Iberia would maintain their respective brands.
The implementation of the merger is also subject to approval by the Monopolies Commission and the European Commission.
Under the agreement, Iberia will be entitled to terminate the merger agreement if the planned pension fund coverage agreed by the British and the pension fund administrators is ‘not reasonably satisfactory’ for the Spanish airline and causes a significant deterioration in the economic conditions included in the merger agreement.