British Airways not expecting pension deficit to affect Iberia merger
British Airways stated it does not expect its pension deficit will affect its merger plans with Iberia (Reuters, 03-Dec-2009). Iberia has the right to back out of the agreement if BA is unable to make a final agreement with the pension’s administration regarding the deficit.
British Airways: "No one is expecting anything untoward to happen in terms of the pensions issue. The merger agreement would not have been signed if anyone thought the pension issue would get in the way of it…Over time the airline will look to do other deals and the structure we are looking to achieve, in terms of the BA-Iberia combination, would allow other partners to be brought into that," George Stinnes, Head of Investor Relations. Source: Reuters, 03-Dec-2009.