12 November, 2009
FACTBOX-How combined British Airways, Iberia would look
(New throughout with details from merger announcement)
MADRID/LONDON, Nov 12 (Reuters) - The boards of British
Airways (BAY.L) and Spain's Iberia (IBLA.MC) have agreed to a
merger to create the world's third-largest airline measured by
revenue. [ID:nLC092017]
Following are some key facts about the new carrier:
TERMS
-- BA shareholders will receive 55 pct of the new company
and Iberia 45 percent.
-- Deal will create new holding company that will own both
existing airlines with dual hubs in London and Madrid.
THE MERGED AIRLINE:
-- CEO: British Airways' Willie Walsh; Chairman: Iberia's
Antonio Vazquez.
-- Headquarters to be in London
-- Operations: The two will still fly under existing
brands, run from dual hubs in Madrid and London
-- Aircraft: 419 aircraft
-- Destinations: 205 airports
-- Passengers per year: 61.5 million
-- Staff: 63,600 (BA 42,000; Iberia 21,600)
-- Turnover: about 15 billion euros ($22.38 billion)
-- Pretax profit (2009E*): $1 billion loss (BA 401 mln stg
pretax loss; Iberia 228.8 mln euro pretax loss)
RATIONALE
-- Greater financial muscle and more routes to compete with
European giants Air France-KLM (AIRF.PA) and Lufthansa
(LHAG.DE)
-- Cost savings and greater buying power on fuel, aircraft,
IT and other products that analysts estimate is worth some 550
million euros a year through to 2015.
-- Very few overlapping routes. Iberia has the biggest
share of the Europe-Latin America market, while BA is the
leading airline on North Atlantic routes and has strong
Europe-Asia connections
-- Ends BA's long chase for Iberia. Fulfills Iberia's
long-time desire for consolidation
TOP FIVE AIRLINES:
Based on 2008 scheduled international passengers carried:
Rank Airline 2008 int'l
passengers
1. Lufthansa 42.2 million
2. Air France 32.5 million
3. British Airways 29.0 million
4. KLM 23.8 million
5. Emirates 22.4 million
Sources: Reuters, British Airways, Iberia, IATA
* Figures expected by analysts for year to March 2009,
according to data from Thomson Reuters I/B/E/S.
(Reporting by Tracy Rucinski, Rhys Jones and Ben Harding;
Editing by Andrew Callus, Tim Dobbyn)
Source: http://www.reuters.com
FACTBOX-How combined British Airways, Iberia would look Added: (12.11.2009)
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