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. 

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.

BA boss warns Middle East airlines could be a threat to UK carriers

As the European Union funds the growth of Middle East airlines, British Airways chief executive, Willie Walsh, has warned this could pose a threat on our own carriers.

Walsh has referred to an agreement between the US and Europe that prohibits government credit guarantees to airlines in the home countries of Airbus and Boeing, yet allows credits to be exported to the Middle East, leaving them with greater opportunities to expand. He said: “We have been slow in the UK and in Europe to recognise the competitive threat. We should be concerned about what is happening.”

In 2010, the UK saw a string of travel operators suffer bankruptcy after the recent economic trouble; Walsh has warned the EU is providing a threat to European airlines. He said: “We are financing our competitors by providing them with cheap access to capital. This is a very significant threat.”

The new Plimsoll Analysis - Global Passenger Airlines, gives a concise assessment of the top 300 major Airlines from around the world. Click here to see how British Airways compares to its key rivals.