Spain Hit by 6.3 Magnitude Earthquake

-- Wikinews

The USGS has reported a 6.2 magnitude earthquake in Spain. It had a depth of 616.7 kilometers. The epicenter was located 25 kilometers northeast from Granada, 106 kilometers northwest of Málaga and 341 kilometers south of Madrid. It occurred on Monday at 00:08:10 local time (22:08:10 UTC).

People posted via Twitter that the earthquake was felt in Cádiz, Málaga, and Murcia.

CNN reports there are no immediate reports of deaths, injuries or damages. "An earthquake with that depth means little damage is likely," seismologist Susan Potter told CNN. "When an earthquake is deeper, the seismic energy is absorbed by the Earth, so there will be less damage expected in the epicenter area," she said too.

Meanwhile, almost a month ago, on March 1, the Spanish Geologist Luis Eugénio Suarez, said that the Granada area could suffer an earthquake within the short term, and with an intensity similar to that of the February 27 Cauquenes, Chile earthquake. Suárez commented that "Spain is not like Chile," because the latter is located on a high seismic frequency area, but also noted that "once every hundred years, a destructive earthquake is produced in the peninsula."

The last earthquake in Spain was in Arenas del Rey, in Granada, 126 years ago, and reached a magnitude of 6.6, leaving between 750 and 900 dead, thousands injured and material destruction.

British Airways and Iberia Sign Merger Deal

-- Wikinews

British Airways (BA) and the Spanish airline Iberia have signed a merger deal, which will create one of the largest air carrier groups in the world.

The two announced the merger yesterday, and said that the deal, which has been expected for a long time, is to be implemented by the end of 2010. The move will make a group with a market value of US$8 billion. The deal has been negotiated since July 2008.

Under the plan, both companies keep their own brands and operations, but will be owned by International Airlines Group, a new holding company. It will be listed in London, but taxed in Spain.

The airlines believe the merger will save $530 million annually. In February, BA reported a loss of $102.4 million for the final three quarters of 2009, whilst Iberia posted an operating loss of $629 million.

Meanwhile, investors in BA will receive an IAG share for every BA share they own, and stockholders in Iberia 1.0205 shares for each share in the Spanish airline; thus, BA shareholders will take 55% of IAG.

"The merged company will provide customers with a larger combined network," commented BA chief executive Willie Walsh. "It will also have greater potential for further growth by optimising the dual hubs of London and Madrid and providing continued investment in new products and services."

Meanwhile, Iberia chief executive Antonio Vasquez remarked: "This is an important step in creating one of the world's leading global airlines that will be better equipped to compete with other major airlines and participate in future industry consolidation."

Independent aviation specialist James Halstead said he believed the merger was necessary for BA to remain competitive amongst other European air carriers. "BA's unique position at Heathrow could help it survive for a short while, but in the long run it needs more than just Heathrow. The main point of the Iberia deal is to be able to cut costs and put the combined company in the position that Air France-KLM and Lufthansa are already in," he said, quoted by The Independent.