Shareholders of British Airways and Iberia have voted in favour of a merger between the two airlines.
British Airways Chief Executive Willie Walsh, said: “We’ve had a strong relationship with Iberia for more than a decade and this merger will enhance both airlines’ strategic and financial positions, creating benefits for our customers, shareholders and staff.
“The merger will create a new holding company International Airlines Group that will be ideally placed to lead future consolidation within the aviation industry.
“It will also create annual synergies of €400 million from the fifth year.
“British Airways and Iberia will retain their individual brands and airline operations.
“The merged company will benefit from the two airlines’ complementary networks with our strong presence in North America, Asia and Africa and Iberia’s strong presence in Latin America and our combined presence in Europe.”
It is intended that the new company, International Airlines Group, will begin operations around January 21, 2011.