International Airlines Group

British Airways and Iberia shareholders have overwhelmingly approved the merger between the two companies.  This will create Europe's second-largest carrier after Air France-KLM, with a market value of around £4.5bn. 

The new company will be called International Airlines Group (IAG) an innocuous title that clearly can be used to take in other partners.  The separate BA and Iberia brands will continue to operate as normal but at some point early in the new year BA shares will be delisted from the London Stock Exchange.

BA shareholders will take 56% of the newly-merged company and Willie Walsh will retain his position as Chief Executive.  Iberia's shareholders will own 44%, and its current President, Antonio Vazquez, will become Chairman.  The new company will have its headquarters in Madrid, and its operational offices will be in London.

Meanwhile BA cabin crew are to be balloted over whether to strike in the new year over travel perks that the union, Unite, says have not been re-instated to certain members.  A BA statement summed up to situation:  "Unite wants to lurch backwards to old-style union militancy.  We are moving forwards." www.ba.com www.iberia.com

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