Bargain-hunting
online travel insurance customers may be pleased to hear a new airline merger could promote lower ticket prices.
British Airways (BA) and Spanish carrier Iberia are believed to have made initial steps towards a new agreement that would see the two companies merged by the end of 2010.
Under the proposals, which are yet to receive approval from the European Commission, BA would become the dominant shareholder with 55 per cent, while Iberia takes 45 per cent.
If completed, the deal would see the new entity become the world's third-largest airline.
Commenting on the news, Frances Tuke, spokesperson for travel association Abta, said: "As far as prices go, the whole point of the merger is to develop a more successful airline company, so with that in mind they will have to be competitive."
Both BA and Iberia have been suffering continued losses throughout the economic downturn.
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