It seems that merger talks are proceeding well between Iberia and British Airways. They are discussing February dates as possible days to sign a memorandum of merger. This merger will create a behemoth in the international airline industry.
There are still stumbling blocks, especially, the multi-billion-dollar pension obligations, but executives seem to be aiming at a first-quarter deal.
This merger will provide both airlines will additional routes. Analysts say that the fit is exceptional and should be a money-maker from the start. The only problem seems to be that both airlines are losing money right now.
I can’t imagine how two money-losing operations when combined will become profitable. I’m sure there is a lot of work left to do on this one.
In the meantime
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
