British Airways and Iberia Airlines to Merge

Many grumblings from the travelling public have been arising lately due to the ongoing merger talks between British Airways and Iberia set to occur in 2010. Why? To sum up an AP article by Jane Wardell, two of the largest air carriers in Europe (in fact, BA is already #3) are going to consolidate, suggesting higher fares for passengers.

Not good, right? Apparently, wrong (I guess). At least that's what Willie Walsh, a chief executive for BA, says. He believes this both good for shareholders and passengers alike. I'm not too sure how passengers will benefit, however. Meanwhile, shareholders have done well as both company's shares soared after the agreement.


This is a wait and see sort of moment for those who love BA. They have incredibly high standards for service, justifying the higher ticket prices to an extent. How will this merger change things, though? My favorite quote from this article, however, is the CEO of RyanAir (Michael O'Leary) who told CNBC about the merger, "I characterize it as two drunks ... holding each other up on the way home," as a reference to the two airlines and their inability to make a profit individually and now merging together.



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