The newest mega-merger in the airline industry launched today as International Airlines Group (IAG), the holding company for British Airways and Iberia, began trading on the London Stock Exchange according to Flight Global.
Both airlines will continue to operate under their own livery but the merger means that the combined influence of the two airlines will now make it the third largest carrier in Europe after Air France-KLM and Lufthansa.
And while the merger still doesn’t propel two of the world’s most recognizable airlines to air supremacy, it’s ultimate goal is to save cost as IAG predicts that the merger will lead to an estimated $543 million in annual savings according to Market Watch.
In that same article, Market Watch notes that according to IAG’s CEO Willie Walsh, the new company will continue to look for additional airlines to include in its expansion plans going forth.
The group may be further expanded at some point. “British Airways and Iberia are the first two airlines in IAG but they won’t be the last. Our goal is for more airlines – but, importantly, the right airlines – to join the group. Today is the first step towards creating a multinational multi-brand airline group,”
IAG is just one of several major airline mergers to occur over the past few years joining Air France-KLM, Delta and Northwest, and United Continental as airlines look for new ways to cut costs and become more efficient.