British Airways, Iberia considering merger

The flag-carrying airlines of British Airways and Iberia are in talks over a merger that could have a significant effect on the aviation network in Europe, it has been announced.

British Airways confirmed that the companies are in negotiations that are supported 'unanimously' by the boards of both organisations.

Fernando Conte, chairman and chief executive of Iberia, which is the national airline of Spain, said: "A merger would be good news for our customers and enhance our existing relationship. We've worked together for nearly ten years and a tie-up would build on that success."

Mr Conte also said that the deal would boost the oneworld alliance and strengthen Madrid's position as the European gateway to Latin America.

Willie Walsh, chief executive of British Airways, said that in today's changing aviation landscape, airline consolidation is "long overdue".

It is expected to be several months before a full agreement is reached on the terms of the merger.

British Airways and Iberia offer flights to destinations all over the world from London Heathrow Airport, including Dubai, Sydney, Buenos Aires and Rio de Janeiro.

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