The world’s third largest airline by revenue was created by British Airways and Iberia. The creation of a new airline means the merger of two airline companies. It is expected that the amalgamation will be completed in late 2010. The new airline will have 419 aircrafts together with 205 destinations to fly.

Such merger led to a negative reaction of Virgin Atlantic noting that it would give a possibility for British Airways and Iberia to augment BA’s prevalence at Heathrow with 44% of take-off and landing slots this winter.

Last year British Airways and Iberia transported 62 million passengers, moreover, if combine their revenues then the figure will be about €15 billion.

The airlines consider the joint cooperation will help to get about €400 million that will be beneficial for companies’ shareholders, customers and even employees. Due to such merger a potent European airline will be created that will be able to rival with other airline companies.

According to Willie Walsh, BA chief executive, both airline companies would keep their own brands, nevertheless they will cooperate as a combined force.

It was estimated that about one third of savings will be received from joint selling, network and revenue management benefits. The companies chose the group CEO Walsh and a management team that will control the combined business.

First of all the aim of the group is to unite the two airlines that have the leading position in the UK and Spain and heighten their presence in the international long haul markets and at the same time to keep their own brands and current operations of each airline.

BA will have a possibility to receive up to 59 routes among which 13 will be in Latin America. As for Iberia, it will have up to 98 new destinations across the UK airline’s network

The companies will also provide better scheduling and connections, reasonable prices, more VIP lounges and improve flyer benefits.