British Airways and Iberia have agreed terms of their long-discussed merger.
The two airlines, who will maintain separate corporate structures so as not to lose routes, will be owned by a Spanish holding company but headquartered in London. BA’s Willie Walsh will be Chief Executive of the combined Group.
There will be job losses in the £400m of synergies produced by the merger – Walsh told the FT: there will be potential job reductions in both organisations, adding these were not being quantified at this stage. Ince two thirds of the cost savings are expected in IT, fleet maintenance and back office functions, it seems likely the job losses will be in those areas.