British Airways and Iberia merge

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.

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New Plan of Iberia to Cut Costs

Iberia decided to approve a strategy, called Plan 2012, the aim of the plan is to increase operating profile by €450 million. To fulfill the plan the company decided to cut costs and make efficient improvements. Rafael Sanchez-Lozano said that as the airline industry underwent a dramatic situation, it was decided to modify Iberia into a viable project. In the first half Iberia Group stated a consolidated dead loss of €165.4 million that could lead to a full-year deficit for the first time in 14 years.
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EU regulators object to airline tie-up plans

European Union regulators warned British Airways, American Airlines and Iberia Airlines that their plans to share their lucrative trans-Atlantic rules may break antitrust rules. According to the EU, a formal charge was sent to each of the airlines, saying their cooperation may go against the rule that forbids companies engaging in partnerships that shut out rivals.

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