BA wins 99% shareholder approval for Iberia merger.

The £4.5bn tie-up will introduce Europe’s second largest airline under the name, International Airlines Group (IAG).  Plans for the collaboration began two years ago after both airlines suffered financial difficulties during the global economic crisis.

Antonio Vazquez, Iberia’s chairman said the joining of the companies would form a “historical agreement that will create a global group to lead a future consolidation process in the airline business.”

With more than 99 per cent of the vote from BA shareholders for the merge to go ahead, BA will own 56 per cent of IAG with Iberia taking control of the remaining 44 per cent.

BA said of the merger: “We have taken a big step toward our merger with Iberia. This will create a stronger business for the long-term benefit of our customers, our shareholders and our employees.”

It is expected the merger will be completed on 21 January with shares in the new company listing in both London and Madrid on 24 January. 

Cheaper fuel and rising passenger numbers lead to Easyjet profits soaring.

The company reported profits of £154m since last September, tripling the £55m revenue made in 2009. Over the past year, passenger numbers increased by 8% bringing the total to 49 million, and as fuel costs dropped by 9%, the company saw a serious overhaul in takings.

Chief Executive, Carolyn McCall said: “We see clear opportunities for Easyjet to continue to take market share as charter traffic continues to decline, as weaker short-haul carriers retrench or fail and as new infrastructure capacity comes on stream.”

As well as these benefits, Easyjet is profiting from more and more European passengers opting for the British preference of flying via budget airlines.

McCall added the company would see added competition in the next year as budget airlines strive to win passengers in the new market.

The company also revealed its intentions to pay a dividend to shareholders in 2012.

British Airways offers to restore cabin crew perks in a bid to end strike action.

The 12-month dispute between BA and the Unite union has been a long and gruelling process for BA, one that has cost the airline £150million.

Staff at BA previously received a 90% discount on stand-by tickets but following strike action from crew members, the company revoked the privilege.

It seems now that some BA employees involved with the strike action will have their travel benefits reinstated, but this will not be true for all as BA considers employee loyalty.

BA said that restoring the travel perks would only come into play if Unite agreed to abandon any legal action against the airline.

The Unite union will put the BA offer forward to members with results due in mid-November. If the employees involved agree to the deal, it would end one of the UK’s longest industrial disputes.

Which UK Airports can cope with soaring security costs

With security costs at UK Airports set to soar in response to the recent Al Qaeda bomb threats, Plimsoll asks the question, "Which of the 138 companies that operate the UK's Airports can absorb the increased cost?"

85 of these companies are already in a precarious state financially and there is a fear in the industry that any new legislation or rules (from what Michael O'Leary calls "securicrats") will push up operators costs to a tipping point.

1 in 3 operators are now making a loss so they have little choice but to increase their prices accordingly, further adding to the cost of flying from the UK. With other European airports not being hamstrung by the controversial Air Passenger Duty intorduced by the UK coalition govetnment, there is a real danger that foreign carriers will look to other major European hubs for their key routes.

So, coupled with even more tax and now these extra security, is the UK set to lose its valuable trans-atlantic hub status and what effect will this have on the companies that run our Airports?

Click here to learn more about Plimsoll's unique assessment of UK Airport operators

The union representing British Airways cabin crew, Unite, has threatened to increase the intensity of their dispute with the airline.

Earlier this year, BA cabin crew went on strike for a total of 22 days costing the airline approximately £150m. Although facing tremendous losses as well as having to cancel hundreds of flights, BA tried to make the best of a bad situation by bringing in employees from other parts of the company to take over cabin crew duties.

Unite has now warned that any further strike action would include any ground staff currently working for BA, including check-in workers and baggage handlers. Introducing these members of BA staff to strike action could potentially be catastrophic to the company.

The union needs to accept that conditions in the post recession industry are such that the airline simply cannot sustain the level of reward its members have become accustomed to. For example, salaries as a percentage of sales for British Airways are 26% compared to 14% at Virgin and 10% at Ryanair. Without a plausible alternative, the board have to cut staff, remuneration and perks if the airline is to survive.

To see how British Airways compares to other Airlines click here and read the following analysis on the Global Airlines