The proposal calls for the creation a new, Spanish-incorporated holding company that would own both airlines, with BA shareholders owning 55 percent and Iberia shareholders owning 45 percent. The carriers, which collectively recorded 2008 revenues of €15 billion (US$22 billion), expect to generate annual synergies of €400 million (US$598 million), one-third of which would come from "joint selling, network and revenue management benefits," and two-thirds from cost savings in "areas such as IT, fleet, maintenance and back office functions." BA would maintain its London base and Iberia would maintain its Madrid base, with future development focused around both hubs. Each airline for at least five years would maintain its own licenses, certificates, codes and brands, with airport slots "protected for the benefit of the combined group."
BA CEO Willie Walshwould serve as CEO of the combined business. The agreement will face a regulatory review and requires approval from both companies' shareholders.