British Airways, Iberia agree to merge

British Airways, Iberia agree to merge    British Airways and Iberia said Thursday their boards have signed an agreement to merge in a deal that Reuters said would create the world’s third-largest airline by revenue.
   The new airline group would have 419 aircraft and fly to 205 destinations. In 2008, British Airways and Iberia carried 62 million passengers and, in their last financial years, their joint revenues are approximately 15 billion euros ($22 billion).
   “There is a compelling strategic rationale for the transaction, which is expected to generate annual synergies of approximately 400 million euros ($595 million),' the companies said in a joint statement, adding that a combination would bring “enhanced customer benefits with a larger combined network for passengers and cargo and continued investment in new customer product”
   The merger is to be completed in late 2010.