British Airways and Iberia have been holding talks regarding a merger between the two companies.
British Airways and Iberia have been holding merger talks, although it would be several months before any such act could take place. Such a deal would make the new concern the third largest airline in the world.
Under the proposed merger, both the British Airways and Iberia brands would continue, allowing both the UK and Spain to still be able to say that they have a ‘national carrier’.
Both airlines are struggling, particularly with the spiralling fuel costs, and the merger is seen as the best way to streamine operations, reduce costs and allow them to compete in what is becoming a changed industry.
Iberia flies to 109 destinations and its base, Madrid, is the European gateway to South America. Analysts expect Iberia to concentrate on the South American routes and British Airways on the Middle and Far East. British Airways, the larger of the two companies, flies to 154 destinations worldwide.
It is too early to say whether a merger would result in job losses although it is quite likely.
Last year, British Airways contemplated a takeover bid for Iberia but later changed its mind.