The move clears the way for the two airlines to sell tickets on each other’s networks, which will collectively operate 419 aircraft flying to more than 200 destinations around the world.
In a parallel ruling the EU regulator also gave its approval to close cooperation between BA and
A statement read: “The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it.”
It dismissed objections that the merger will drive up prices on key routes such as London to Madrid, insisting: “Passengers will have adequate alternatives to fly on these routes after the merger.”
Under the deal both BA and Iberia will retain their brands, though they will be subsumed by a new holding company called International Airlines Group (IAG). The merged business will have its headquarters in Madrid, with incumbent BA boss Willie Walsh taking over as chief executive officer.
Speaking at an industry event last week, Mr Walsh affirmed IAG’s commitment to rapid expansion by announcing plans to acquire at least one other airline within a year of its creation.
The airline industry has seen a wave of consolidation in recent times as carriers seek to reduce costs by sharing their route networks and coordinating prices and schedules. US carriers
While the Iberia deal is now all but certain BA must still wait for US approval of its tie-up with AA, which critics say would give the airlines a virtual-monopoly on some transatlantic routes.
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