Abta welcomes British Airways-Iberia merger by Cheap Flights Booker UK

Abta - The Travel Association has welcomed the news that British Airways and Iberia have reached a preliminary agreement for a merger.

The companies are still awaiting approval from the European Commission for the tie-up, which would create the world"s third largest airline.

Frances Tuke, a spokeswoman for Abta, pointed out that British Airways and Iberia have been struggling during the economic downturn and said that an improvement in their fortunes would be beneficial for consumers.

"The synergy of having the two together, making the whole entity stronger, will only be a good thing for customers," she commented.

Ms Tuke also predicted that both airlines will retain their individual brand identities, pointing out that Willie Walsh, chief executive officer of British Airways, has suggested that the airline will maintain the levels of service it is known for.

If the merger is given regulatory approval next year, British Airways will own a 55% share in the new company and Iberia will hold the remaining 45%.

Virgin Atlantic warned that the deal will lead to an increase in British Airways" dominance at London Heathrow.


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