us airways

BA and Iberia sign merger deal

LONDON — British Airways PLC and Iberia SA signed a long-awaited merger deal on Thursday, the latest bid by cash-strapped airlines to stay airborne in an industry broken by the global financial crisis and wracked by industrial unrest.

The deal to create Europe’s third largest airline intensifies survival consolidation in the sector, coming as two major U.S. players – United Airlines and US Airways – are also locked in talks about a combination.

“The problem is that there’s too many airlines,” said Stephen Furlong, an analyst at Davy Stockbrokers in Dublin. “To be a major player in global aviation going forward, you are going to have to have size and scope and a network.”

BA and Iberia have structured their deal, which will create a new holding company majority-owned by BA shareholders, to leave room to capitalize on further tie-ups.

In a move that worries rival airlines and concerns consumer groups, they are hoping to extend their arranged deal to the United States by deepening their existing alliance with fellow Oneworld member American Airlines.

Future attempts to add carriers elsewhere in Europe and in Asia will surprise few industry watchers.

The two loss-making airlines are among many struggling to survive after a fall in demand from both business and leisure travelers in the wake of the global credit squeeze. Those who are still traveling have increasingly turned to the cheaper fares of no-frills carriers.

That has led many of the full service airlines to cut expensive services, leading them to more closely resemble their low-cost rivals. BA has already scrapped onboard meals on short-haul flights while some U.S. carriers have begun charging for drinks on long-haul flights.

Further attempts to cut costs by lightening staff pay packets and axing thousands of jobs have resulted in damaging strike action across Europe. BA’s own acrimonious battle over pay and conditions with its 13,000 cabin crew cost it up to 45 million pounds when staff walked out for a total of 10 days last month. They have threatened further action if the dispute is not resolved.

BA and Iberia have been trying to hammer out an agreement that would form a carrier with a market value of around $7.5 billion pounds since 2008, seeking greater economies of scale. They are already lagging behind in Europe, following Air France’s tie-up with KLM. That deal placed the combined Air France-KLM second behind Germany’s Lufthansa as the largest European airline by revenue.

Iberia boss Antonio Vazquez, who will be chairman while BA head Willie Walsh takes the CEO role of the new holding company, to be known as the International Airlines Group, said the combined firm would “be better equipped to compete with other major airlines and participate in future industry consolidation.”

BA and Iberia plan to complete the deal, under which they will retain their individual brand names, by the end of the year. They anticipate cost savings of some euro400 million ($530 million) a year by the fifth year.

68 dead in Kyrgyz violence: health ministry

BISHKEK: A total of 68 people were killed in the riots that saw the Kyrgyz opposition take control of the Central Asian state, the health ministry said Thursday.

A ministry spokesman said another 527 people were injured in clashes with security forces in Bishkek and other towns, 400 of whom remained hospitalized.

Opponents of President Kurmanbek Bakiyev announced late Wednesday that they had taken control of all the main state institutions, including government television, and had formed a provisional government led by former foreign minister Roza Otunbayeva.

Officials said Bakiyev had fled the capital on Wednesday aboard a small plane and had gone to the southern city of Osh.

Obama briefed on United plane incident: White House

WASHINGTON: U.S. President Barack Obama, who is en route to Prague, was briefed on the United Airlines incident in which a passenger was taken into custody over a possible disturbance, a White House official said on Thursday.

“The President was briefed by National Security Advisor General Jim Jones and National Security Staff Chief of Staff Denis McDonough at 8:50 p.m. EDT (Wednesday) and appropriate actions were taken to ensure the safety of the traveling public,” the official said on condition of anonymity.

“The incident is currently under investigation.”

Mike Tyson Arrested

Mike Tyson Arrested, The boxing champion once known as the “baddest man on the planet”, was arrested by police on suspicion of battery following an incident with a photographer on a United Airlines ticket against. The photographer claims “Iron Tyson” attacked him, knocking him to the ground and the cut on his forehead in a fight this afternoon. The photographer is being treated at a local hospital.

who has taken a softer approach to life after serving time in prison and spending years as Hellraiser – traveling with his wife and 10 months old when the family was pounched by the photographer. The representative said Tyson acted in self defense.

“There are lots of different versions of this story and that everything will go forward,” said Tyson spokesman Tammy Holcomb. “There were many witnesses and that’s what this case everything will depend. Now he is very obedient, very cooperative.’s Waiting in the holding cells.”

Both Shutterbug and Mike want to file misdemeanor battery charges.  43, lost her 4 year old daughter of Exodus in a choking accident last May.