Iberia and BA merger to be decided

The European Commission have announced that they will decide by July 15 whether or not to block or allow a planned merger between British Airways and Spains Iberia.

The two airlines are planning to complete the $8 billion merger by December.

The Commission, who act as competition watchdog for the 27 countries of the EU may ask the airlines to make certain concessions, like giving up certain airpot slots, to avoid concerns that the deal may be harmul to competition. 

The two airlines hope the merger will prove a useful tool in competing with airlines such as Air France-KLM, Ryanair and Lufthansa.

It is likely that the Commission will seek views from passengers and other airlines about the BA-Iberia merger. If there are concerns or if the carriers offer concessions, a further a 35 days can be added to the review.

12 June 2010