BA, Iberia Cargo Units to Run as One

BA, Iberia Cargo Units to Run as One

International Airlines Group, formed by the merger of British Airways and Iberia, announced it will run the carriers' cargo operations as a single business unit.

The UK and Spanish carriers will, however, retain their current brands.

IAG has set up a small cargo management team led by managing director Steve Gunning, the former head BA World Cargo, and his deputy, former Iberia Cargo boss Ignacio Diez Barturen.

All other cargo employees will remain with their current airlines.

By The Numbers: European Airlines' Freight Traffic

The combined cargo operation will rank among the top 10 cargo airlines in the world.

"We will have one global network with a single sales contact point in every market and consistent customer experience around the world," Gunning said. "By creating a single business unit, our customers will benefit from an integrated range of products and access to a wider network.”

"We can combine British Airways' network strength in North America, Asia and Africa with Iberia's in Latin America and both airlines significant freighter network," Barturen said.

BA has three wet leased 747-400 freighters and Iberia operates two narrow bodied cargo aircraft.

IAG 's cargo traffic in March increased 5.6 percent from a year ago and freight revenue rose 7.7 percent on a 9.1 percent increase in capacity. The load factor eased 0.9 percentage points to 72.7 percent.

Iberia and Spain's traffic control authority Aena last month unveiled plans for a $142 million cargo terminal at Madrid-Barajas airport, which will be the largest European freight hub for Latin America.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.