British Airways is positive about the proposed deal
BA negotiates merger with Iberia
30 July 2008British Airways has confirmed it is in talks with Spanish airline Iberia over a possible merger which could affect the European aviation industry, it has been reported.
Both companies are in talks which are backed by their respective boards about a deal which could see the creation of new flights to an increased number of international destinations.
Willie Walsh, chief executive of British Airways, said that the proposed deal of was "long overdue" in today''s evolving aviation sector.
"The combined balance sheet, anticipated synergies and network fit between the airlines make a merger an attractive proposition, particularly in the current economic environment," said Mr Walsh.
Fernando Conte, chairman and chief executive of Iberia, believes that the proposed deal would benefit customers and would strengthen the relationship of the two companies.
"We''ve worked together for nearly ten years and a tie-up would build on that success," he said.
While talks have just begun it could take several months before an agreement is reached by the two airlines.
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