Recent reports show that the UK government will not stand in the way of British Airways becoming a Spanish-based company. This recent change for British Airways is a direct result from the merger that is set to take place with Iberia.

The new merger between Iberia and British Airways is close to being finish since the terms sit well with both sides. The merger would allow both of the airlines to continue to operate their businesses as separate brands, but they would both be under a new operating company. The only fact that is unclear is whether the parent company that will be operating both carriers will be based in Britain or Spain.

The UK government cleared British Airways for the Spain relocation, stating that they would feel completely at ease with the companies choice to be based in Spain. However, some experts point out that it is very likely that the company will retain listings for both Madrid and London. Having the Madrid and Heathrow hubs doubled would be a very strategic advantage for the success of this company.

Despite this new merger, many things are still thought to stay the same at both companies. Most people feel that Fernando Conte, the current chairman of Iberia, is very likely to become the chairman of both airlines. Many experts have said that it’s easier for companies that have been well run machines to keep the people who have been in charged in their spots. Removing people who have been doing good can only lead to bad things, they go on to say.

For more information visit: www.britishairways.com or www.iberia.com