Entries in International Consolidated Airlines Group (4)

Tuesday
May222012

Nine BMI routes get BA numbers as integration proceeds

British Midland International routes flown between London's Heathrow Airport (IATA: LHR; ICAO: EGLL) and nine European and African destinations will acquire British Airways flight numbers tomorrow, as part of the integration process first announced late last year.  The nine routes affected will be those flown between Heathrow, and the BMI destinations of Agadir, Morocco; Basel, Switzerland; Bergen, Norway; Casablanca, Morocco; Hanover, Germany; Marrakech, Morocco; Nice, France; Stavanger, Norway; and Vienna, Austria.  According to British Airways, all departure and arrival terminals at Heathrow will remain the same, as will estimated departure and arrival times.

On April 19 this year, International Consolidated Airlines Group, led by former British Airways CEO Willie Walsh, bought BMI from Lufthansa.  BMI withdrew its membership in the Star Alliance last month.  British Airways is part of the Oneworld airline alliance.

Also, Virgin Atlantic will launch a four times weekly non-stop round-trip route between Heathrow and Vancouver International Airport (IATA; YVR; ICAO: CYVR) Thursday.  The route will operate in both directions on Tuesday, Thursday, Saturday, and Sunday.  According to results returned by the search engine on Virgin Atlantic's website, the route will be operated with the Airbus A340-300.  The flight is approximately ten hours long in both directions.

related story

BA and Iberia respective shareholders both approve merger (Nobember 29, 2010)

original stories

bmi flights changing to BA flight numbers (British Airways)

BMI to be 'integrated quickly' into British Airways (Airport Watch UK)

Virgin Atlantic Launch Flights to Vancouver (Virgin Atlantic)

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Friday
Jan212011

British Airways and Iberia unite under one holding company

British Airways (BA) and Spain's largest airline Iberia officially merged under the holding company International Consolidated Airlines Group earlier today.  This move creates the second-largest European-based airline by some measures, and the third-largest by others.  Germany's Lufthansa was the continent's largest airline by most major measures in 2009.

The merger will give British Airways greater access to South America than it had previously, and Iberia will enjoy greater access to North America than it had previous to the merger.

The final shares of British Airways stock were traded on the London Stock Exchange late yesterday, according to The Guardian, a U.K.-based newspaper.  The merger is valued at a little more than 6 billion GBP (7.09 billion EUR, 9.59 billion USD).  Former British Airways CEO Willie Walsh will assume the same post at the new company.

related stories

BA and Iberia respective shareholders both approve merger (November 29, 2010)

British Airways resolves Iberia merger concern over deficit (September 23, 2010)

DOT grants anti-trust immunity to BA-Iberia-AA alliance (July 22, 2010)

BA-Iberia merger approved by the EU (July 14, 2010)

original stories

British Airways, Iberia merger takes effect (Yahoo Finance)

British Airways trades for last time ahead of Iberia merger (The Guardian)

Monday
Nov292010

BA and Iberia respective shareholders both approve merger

Earlier today, shareholders in British Airways and Iberia Airlines voted "overwhelmingly" in favor of a proposed merger between the two European carriers which would create the third-largest airline in Europe.  Among European-based carriers only Lufthansa and Air France-KLM would be larger.  The resulting business entity will be called International Consolidated Airlines Group.  The London-based Daily Telegraph reported that Willie Walsh, CEO of British Airways, would like to consolidate additional airlines within this new holding company in the future, and that this is the reason for the "bland" holding company name.

The merger is worth an estimated 5.7 billion GBP (6.76 billion EUR; 8.89 billion USD) and will be executed entirely with company stock.  According to the New York-based Wall Street Journal, shareholders of British Airways will receive a share of International Consolidated Airlines Group for every share of British Airways they own, and shareholders of Iberia Airlines will get 1.0205 shares of the new holding company for every share of Iberia.  Iberia reported on its website that five years from now, the new multinational corporation expects the airlines' combined efforts to produce 400 million EUR (337 million GBP; 526 million USD) annually in excess of the sum of the two airlines' individual expected revenues.

Both British Airways and Iberia are members of the Oneworld airline alliance.

Operational headquarters of the airline resulting from this merger will be in London, and corporate headquarters will be in Madrid.  Each city is the capital of its respective country.  Despite the move, the two merging airlines "will keep their separate brands and identities" according to the Wall Street Journal today.  The merger is scheduled to be officially complete on January 21 next year.  The Daily Telegraph noted solemnly that British Airways' individual ticker symbol would no longer be visible on the London Stock Exchange, as of January 24 next year.

Mr. Walsh, and Iberia CEO Antonio Vázquez Romero will hold a press conference at Madrid's Hotel Intercontinental on November 30, at 10:00 in the morning local time, according to Iberia's press release.

British Airways is the highest-profile airline headquartered in the United Kingdom, and was founded in 1974, from the merger of the British Overseas Airways Corporation and British European Airways.  It is based in the borough of Hillingdon in London.  Its largest hub is Heathrow International Airport (IATA: LHR; ICAO: EGLL).  It operates 239 aircraft (Airbus and Boeing) to destinations on all six permanently inhabited continents.  Company stock is currently traded on the London Stock Exchange, although the "BA" ticker symbol will be replaced by the ticker symbol for International Consolidated Airlines Group next January 24.

Iberia Airlines was founded in 1927, and is the largest carrier based in Spain, by number of passengers carried.  It is headquartered in Madrid, and maintains hubs at Barajas Airport in the Spanish capital (IATA: MAD; ICAO: LEMD), and also at Barcelona Airport in the northeast of the country (IATA: BCN; ICAO: LEBL).  It operates an all-Airbus fleet of 116 aircraft to 99 destinations in Europe, Asia, Africa, North America, and South America.

related stories

British Airways resolves Iberia merger concern over deficit (September 23, 2010)

DOT grants anti-trust immunity to BA-Iberia-AA alliance (July 22, 2010)

BA-Iberia merger approved by the EU (July 14, 2010)

original stories

BA, Iberia holders approve merger (Yahoo Finance)

Iberia and British Airways shareholders approve merger (Iberia Airlines)

BA, Iberia Shareholders Back Merger (Wall Street Journal)

British Airways shareholder vote to trigger end of BA name on stock market screens (Daily Telegraph)

Wednesday
Jul142010

BA-Iberia merger approved by the EU

Today the European Union sanctioned the merger of British Airways, the United Kingdom's highest-profile airline, and Iberia, the flag carrier of SpainInternational Consolidated Airlines Group is the name of the Anglo-Spanish holding company created as a result of the merger.  And ultimately, it wishes to incorporate the United States-based carrier American Airlines into this network, for a three-way alliance that would, if approved by the United States, give the network "a virtual monopoly on some trans-Atlantic routes," according to www.cheapflights.co.uk

Approval by the European Union of this proposed merger sent United States airline stocks higher this morning, on a day that saw stocks in many other businesses and industries flatline or go lower.  AMR Corporation, the holding company of American Airlines, was up sharply in the first twenty minutes of trading this morning, but by close, had settled back to where it started the day, actually down three cents per share.

American Airlines was formed in New York in 1930, when dozens of smaller airlines merged to form American Airways.  It relocated its headquarters to Dallas, Texas in 1979, where the corporate offices remain today.  The airline's largest hub is at Dallas-Fort Worth International Airport (IATA: DFW; ICAO: KDFW).

British Airways was founded in 1974 with the merger of the British Overeas Airways Corporation and British European Airways.  It is headquartered in the borough of Hillingdon, in London, near its largest hub, Heathrow Airport (IATA: LHR; ICAO: EGLL).  Iberia was founded in 1927, and is the largest carrier based in Spain, by number of passengers carried.  It is headquartered in Madrid, and maintains hubs at Barajas Airport in the Spanish capital (IATA: MAD; ICAO: LEMD), and also at Barcelona Airport in the northeast of the country (IATA: BCN; ICAO: LEBL).  Despite the merger, British Airways and Iberia will both continue to use their own distinctive branding schemes and logos.

related stories

Alitalia joins network of Air France/KLM and Delta (July 5, 2010)

Qantas and China Eastern codeshare more flights (June 25, 2010)

JAL and AA take another step toward anti-trust immunity (June 24, 2010)

United Airlines and Jet Airways agree to codeshare (June 18, 2010)

Malév and Etihad sign a codeshare deal (June 9, 2010)

The United-Continental merger is not yet a sure thing (May 19, 2010)

Two airlines looking for awards in Hamburg next week made a deal (May 12, 2010)

United and Continental will probably merge (May 3, 2010)

original stories

EU gives green light to BA, Iberia merger (www.cheapflights.co.uk)

Airlines rise after E.U. approves AMR, BA alliance (www.marketwatch.com)