Iberia merger with British Airways to be completed by end of 2010
The $8 billion merger between British Airways and Iberia received a thumbs up from regulators.
What that means is the biggest obstacle standing in the way of allowing the two carriers to join forces is now behind them.
BA and Iberia will now move ahead with their planned merger, which they both been eager to do, however with BA's $5.8 billion deficit in their employee pension fund, it was putting the deal in jeopardy.
With the new agreement back earlier this summer, British Airways stated it would put aside an estimated $500 million each year until 2026 to help lower the deficit. Iberia's shareholders have been willing to wait it out and see what BA would come up with before nixing the entire merger idea.
British Airways and Iberia have set a November deadline to complete the merger process.