British Airways and Iberia Merger The multi‑million merger between British Airways and Iberia, which was agreed upon in 2009, was completed in January 2011. During the initial announcement, a statement by the two companies said that this merger will benefit customers, shareholders, and employees. It was seen as a way to cut costs after periods of losses for both firms, to compete with other merged companies, and to provide much needed synergies.

a. Explain the cost‑cutting potential of this merger. Do you think it will be passed on to travelers or would it be used to boost profits?

b. Are customers, employees, and shareholders likely to benefit? Explain.