The Iberia boards and British Airways signed an understanding memorandum thereby bringing airlines close to all-stock union which is making from past one year.
 
TopCo, a €15 billion enterprise is working towards retaining every brand as a nationalized flag carrier thus safeguarding on-going operations of different airlines.
 
However, the accomplishment of the deal will take one more year. Today, the carriers declared their expectation of signing a merger agreement during the first half of the coming year after which there would be a need of approval from shareholder not later than early 2010 with achievement that is expected to take place after a month following the approval. The deal needs approval from regulatory authorities and carriers shareholders.
 
Under agreement terms, British Airways Shareholders that are expected to hold about 55% of holding company will earn one share during the merger for every share that is held. On the other hand, Iberia shareholders encompasses rest of the 45% will gain around 1.0205 different shares for existing Iberia share that is held. Every carrier will assign half of TopCo 14 board members.
 
The revered CEO of British Airways, Willie Walsh on an investor presentation that took place in New York earlier in this week said that they have talked to Iberia for some time and discussions received for the renewed encouragement as result of the change in the top management during July in Iberia. He said this by reference to Fernando Conte of Iberia while stepping down from the post of CEO.
 
Walsh. The CEO of the new airline group with the CFO Keith Williams also declared that they have made discussions and constructive negotiations with senior management team. According to him, most important issues which were still outstanding between them were addressed largely.    
 
The CEO and new chairman of Iberia, Antonio Vázquez who is about to become the chairman of new holding company after the completion of the deal discussed about the long process wherein number of people at Iberia & British Airways worked hard for achieve this agreement.
 
The Iberia and British Airways will combine and fly about 419 aircrafts which will serve over 205 destinations for about 62 million joint passengers. While for the customers, the carriers foresee a broad network allowing accessing of more lounges and repeated flyer benefits. Considering the network with Iberia strength in the Latin American and presence of British Airways in the Asia/Pacific, North America and Africa, airlines promise the customers of good frequencies as well as connections at highly competitive prices. Also the carriers are expected to accomplish the goal of achieving €400 million in the synergies on annual basis.