BA, Iberia merger closer

The on-again, off-again merger between British Airways and Iberia appears to be going forward, with the two carriers reaching a preliminary agreement which could see the merger completed in late 2010.

The preliminary agreement will lead to the creation of an airline group with a fleet of 419 aircraft flying to 205 destinations, although the two brands would remain separate. The joint holding company would be chaired by current Iberia chairman Antonio Vazquez, while it is expected that BA CEO Willie Walsh would be the group chief executive.

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