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British Airways, Iberia Shareholders Approve MergerNovember 29, 2010 By: Jena Tesse Fox
In what is no surprise to those following the British Airways-Iberia-American Airlines merger, shareholders in British Airways and Spain's Iberia have approved a merger of the two carriers that will create the world's third-largest airline by revenue.
Reuters is reporting that the two firms, which announced merger plans in April and expect the deal to close in January, said Monday that investors had backed the combination at separate meetings.
The new company, International Airlines Group, will position the two airlines for further consolidation in the global airline sector as it emerges from a prolonged industry downturn.
The combination is expected to generate cost savings of $529.5 million after the fifth year.