International Airlines: Worst Name Ever

[derg]

But they're still keeping the BA and Iberia Brand Names, which is good.

Merged BA to be renamed International Airlines

British Airways is to change its name to International Airlines after its £5 billion merger with Spain's Iberia completes at the end of the year.

BA and the Spanish flag carrier finally signed their merger agreement after a delay of over a week. It was said "technical issues" had prevented the expected conversion of last November's memorandum of understanding into a merger document which had been scheduled to be signed by the end of March.

After signing the deal, the airlines said they expect the deal to formally complete by December though there still remains an outstanding issue of BA's pension liabilities. Today's deal reitered Iberia's right to walk away if BA's pension recovery plan is not, in its view, satisfactory.

The merged entity will exist within a new holding company called International Consolidated Airlines Group which will trade as International Airlines Group. But for customers, the individual BA and Iberia brands will be retained.

BA shareholders will receive one new ordinary share in International Airlines for every BA share they hold. Iberia shareholders are to receive 1.0205 International Airlines shares for every existing Iberia share. The shares will be listed on the London and Madrid stock exchanges.

In a statement, the merged group said: "[The deal] has been structured so that it can take advantage of further consolidation in the global aviation industry." Shares in BA were unchanged this morning at 238.3p.

The merged group will have 408 aircraft flying to 200 destinations around the world carrying more than 58 million passengers per year. It is expected to have annual cost savings of €400 million (£350.8 million) by 2015 — an indication of the level of cost-cutting to come for BA staff, thousands of whom were on strike for seven days last month over attempts by Willie Walsh, the BA chief executive, to implement a shake-up of staffing levels and terms and conditions.

Mr Walsh, who is the chief executive-designate of the new airline, said: "The merged company will provide customers with a larger combined network. It will also have greater potential for further growth by optimising the dual hubs of London and Madrid and providing continued investment in new products and services."

 

[WestIndian425]

I had no idea this was going on! Guess the proposed UA/US merger wouldn't seem so far-fetched anymore.

I wonder how this will affect BA/AA and VS.

 

[ASpilot2be]

What was that? Oh, that was originality flying out the window.:insane:

 

[Orange Anchor]

BA spokesman Reginald Smith-Smythe-Smithy said, "This merger will give us a chance to replicate the mergers we have seen in the US. We expect to hammer the employees, gut the contracts and outsource as much as possible whille lowering the level of service and increasing the price of a ticket. We will institute little niggling add-on fares for carry on bags, checked bags, people wearing brown shoes and for fat ladies wearing brightly colored spandex, among a few we can mention. And we, the top level executives, plan on being out of here as soon as the stock price doubles.

Having watched the successful efforts of our colleagues across the pond, we will not participate openly in pitting the two employee groups against each other however we will occasionally mention how Brits are noted for bad teeth and Spaniards have dark hair that appears greasy. This will help us entrench stereotypes and frustrate any contract negotiations. Additionally, we will use decals on the airliners so we can shift them from one carrier to the other to keep employees in a constant state of angst.

 

[N519AT]

So are they going to be bigger or smaller than DAL/NWA?

Man, all the airlines are merging. Soon it's going to be one big worldwide airline and then people will really be complaining about ticket prices.

(kind of)

 

[Orange Anchor]

British Airways operates Boeings and Airbi with 231 a/c including 24 orders for the 787. Iberia operates only Airbi with 121 ranging from -318s to -340s. Iberia has orders for more 320s and 340s.

Delta operates just about everything including old Douglas DC-9-30s/-40s/-50s. Fleet size is posted at 748 aircraft so appreciably larger than the BA/Iberia fleet.

The proposed USAir/UAL merger would produce a carrier initially with 702 aircraft.

 

[JordanD]

Sounds like a generic airline out of a Bruce Willis hijacking action movie.