Search: BA Iberia merger
British Airways and Iberia have agreed the basis for a proposed merger expected to be completed in late 2010, a BA spokesman has said.
The proposed merger would create an airline group with 419 aircraft which would fly to 205 destinations.
BA chief executive Willie Walsh said: "The merger will create a strong European airline well able to compete in the 21st century."
He added: "Both airlines will retain their brands and heritage while achieving significant synergies as a combined force."
A merger would create an airline carrying around 60 million passengers a year with a fleet of more than 400 aircraft.
BA, which has a fleet of 246 planes, carried 33 million passengers last year, while Iberia carried 28.5 million travellers and has 174 aircraft.
