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| BA merger 'good for passengers' | BA merger 'good for passengers' |
| (about 1 hour later) | |
| British Airways (BA) boss Willie Walsh has said the planned merger with Iberia is "great news for British Airways, our customers and our shareholders". | British Airways (BA) boss Willie Walsh has said the planned merger with Iberia is "great news for British Airways, our customers and our shareholders". |
| He also said there was "no question" of the airline's standards of service being cut after its merger. | He also said there was "no question" of the airline's standards of service being cut after its merger. |
| His comments came a day after the two carriers said they had reached a preliminary merger agreement. | His comments came a day after the two carriers said they had reached a preliminary merger agreement. |
| BA's main union, Unite, warned it would not back the deal without a commitment to avoid compulsory redundancies. | BA's main union, Unite, warned it would not back the deal without a commitment to avoid compulsory redundancies. |
| Third largest | Third largest |
| In an interview with the BBC, Mr Walsh reiterated that both firms would retain their separate brand names. | In an interview with the BBC, Mr Walsh reiterated that both firms would retain their separate brand names. |
| I think BA will be pleased with the deal they have got - the headquarters in London, led by Willie Walsh, and BA will be majority shareholder Douglas McNeil of Astaire Securities BA's long-haul route to Iberia tie-up BA's pension scheme problems class="" href="/2/hi/business/8358943.stm">The view from Madrid | |
| The merger, which is expected to get regulatory backing and be concluded by the end of next year, is set to create the world's third largest airline. | The merger, which is expected to get regulatory backing and be concluded by the end of next year, is set to create the world's third largest airline. |
| Under the terms of the deal, BA will hold a a 55% stake in the new company with Iberia holding 45%. | Under the terms of the deal, BA will hold a a 55% stake in the new company with Iberia holding 45%. |
| The combined firm would have 419 aircraft flying to 205 destinations, and BA and Iberia said it would save them a total of 400m euros ($594m; £358m) in costs a year. | The combined firm would have 419 aircraft flying to 205 destinations, and BA and Iberia said it would save them a total of 400m euros ($594m; £358m) in costs a year. |
| However, Iberia says it can pull out of the deal if BA fails to resolve its pension deficit problem. | However, Iberia says it can pull out of the deal if BA fails to resolve its pension deficit problem. |
| Cabin service | Cabin service |
| "This is all about the future, about creating a strong European airline at which BA will be at the heart," said Mr Walsh. | "This is all about the future, about creating a strong European airline at which BA will be at the heart," said Mr Walsh. |
| "The headquarters will be based here [in London], it will be listed in the UK, I will be chief executive." | "The headquarters will be based here [in London], it will be listed in the UK, I will be chief executive." |
| He denied speculation that, following the merger, BA's level of cabin service would be reduced to Iberia's level. | He denied speculation that, following the merger, BA's level of cabin service would be reduced to Iberia's level. |
| "There is no question about British Airways' standards. We are working to improve them, and think we are doing a tremendous job," he said. | "There is no question about British Airways' standards. We are working to improve them, and think we are doing a tremendous job," he said. |
| Responding to the question of whether the planned merger would result in significant job cuts, he said: "I don't think staff will be worried, consolidation is part of our industry." | Responding to the question of whether the planned merger would result in significant job cuts, he said: "I don't think staff will be worried, consolidation is part of our industry." |
| Unite's national office for civil aviation, Steve Turner, said the union was seeking urgent talks with BA. | Unite's national office for civil aviation, Steve Turner, said the union was seeking urgent talks with BA. |
| "It is imperative that both companies sit down as soon as possible with the unions here and in Spain to discuss how jobs and standards can be safeguarded," he said. | "It is imperative that both companies sit down as soon as possible with the unions here and in Spain to discuss how jobs and standards can be safeguarded," he said. |
| Unite is already balloting its members among BA's cabin crew on whether to take action over the company's existing cost-cutting plans, while Iberia staff have already gone on strike over pay and plan more disruptions in the run-up to Christmas. | Unite is already balloting its members among BA's cabin crew on whether to take action over the company's existing cost-cutting plans, while Iberia staff have already gone on strike over pay and plan more disruptions in the run-up to Christmas. |
| Analysts say that post-merger job cuts are expected among administrative staff, but that with the headquarters of the new firm being established in London, redundancy fears are strongest in Spain. | Analysts say that post-merger job cuts are expected among administrative staff, but that with the headquarters of the new firm being established in London, redundancy fears are strongest in Spain. |
| BA 'dominant' | BA 'dominant' |
| Aviation expert Douglas McNeil of Astaire Securities said BA would be "relieved" to have finally got the merger deal in place. | Aviation expert Douglas McNeil of Astaire Securities said BA would be "relieved" to have finally got the merger deal in place. |
| "I think BA will be pleased with the deal they have got - the headquarters in London, led by Willie Walsh, and BA will be majority shareholder," he said. | "I think BA will be pleased with the deal they have got - the headquarters in London, led by Willie Walsh, and BA will be majority shareholder," he said. |
| However, Virgin Atlantic, one of BA's big competitors in the UK, raised concerns over the new company's market share. | However, Virgin Atlantic, one of BA's big competitors in the UK, raised concerns over the new company's market share. |
| Both BA and Iberia have been losing money during the downturn as businesses and individuals cut back on flying. | Both BA and Iberia have been losing money during the downturn as businesses and individuals cut back on flying. |
| Mick Rix, GMB union: "A friendly merger is far better than a hostile takeover" | Mick Rix, GMB union: "A friendly merger is far better than a hostile takeover" |
| Mr Walsh has previously said a merger would help both firms cope with the recession. | Mr Walsh has previously said a merger would help both firms cope with the recession. |
| The firms have considered a tie-up for a number of years and held talks on the issue in July 2008. | The firms have considered a tie-up for a number of years and held talks on the issue in July 2008. |
| BA already owns 13.5% of Iberia and the two carriers have a code-sharing agreement under the One World grouping of airlines, which allows them to sell seats on each other's services. | BA already owns 13.5% of Iberia and the two carriers have a code-sharing agreement under the One World grouping of airlines, which allows them to sell seats on each other's services. |
| Financial woes | Financial woes |
| The agreement comes a week after BA said it would cut a further 1,200 jobs and reported a loss in the first half of its financial year for the first time in its history. | The agreement comes a week after BA said it would cut a further 1,200 jobs and reported a loss in the first half of its financial year for the first time in its history. |
| HAVE YOUR SAYWe are in a recession and the member states of the EU must pull together for the good of allJames, East Lothian Send us your comments | HAVE YOUR SAYWe are in a recession and the member states of the EU must pull together for the good of allJames, East Lothian Send us your comments |
| It made a pre-tax loss of £292m in the six months to the end of September. | It made a pre-tax loss of £292m in the six months to the end of September. |
| The half-year results also revealed a growing problem with its two final-salary pension schemes. | The half-year results also revealed a growing problem with its two final-salary pension schemes. |
| In the past six months, the surplus in one scheme fell from £860m to £27m, while the deficit in the other scheme ballooned from £1.2bn to £2.7bn. | In the past six months, the surplus in one scheme fell from £860m to £27m, while the deficit in the other scheme ballooned from £1.2bn to £2.7bn. |
| Iberia revealed on Friday that it had made a net loss of 182m euros in the nine months to the end of September, compared with a profit of 51.1m euros a year ago. | Iberia revealed on Friday that it had made a net loss of 182m euros in the nine months to the end of September, compared with a profit of 51.1m euros a year ago. |
| What is your reaction to the merger between British Airways and Iberia? Do you work for either company? Send us your comments using the form below. | What is your reaction to the merger between British Airways and Iberia? Do you work for either company? Send us your comments using the form below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |