Bye, bye BA? Well, not quite
Shareholder approval for a near six billion pound merger between British Airways and Iberia to create Europe’s No. 3 airline has been overshadowed by the threat of fresh union action at the British flag carrier.
BA chairman Martin Broughton told shareholders that the deal with the Spanish flag carrier had a “compelling, strategic and financial logic†and would benefit employees, passengers and shareholders.
The pair will form International Consolidated Airlines Group with a combined fleet of 406 aircraft, carrying 57.5m passengers a year.
The holding company will sit above the two operating businesses, which will retain their brands, national identities and flying rights.
But some things never change, it seems.
The Unite union said it would be balloting thousands of cabin crew about whether to take further industrial action in a long-running dispute with BA’s management over pay and working conditions.
The battle led cabin crew to walk out for 23 days in May and June – causing the cancellation of hundreds of flights and costing BA millions in lost revenue and compensation.
Unite joint leader Tony Woodley said the union is angry that negotiations with BA over the restoration of cabin crew perks have stalled.
Ian Jarrett
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