Search: BA merger hailed
The British Airways-Iberia merger will be "good news for passengers and staff", BA chief executive Willie Walsh has said.
He added that BA and Spanish carrier Iberia would retain their individual identities and that it was wrong to suggest the deal would take the "British" out of British Airways.
Mr Walsh said the merger, expected to be completed by the end of next year, would create "an airline group that will truly compete on a world level".
Mr Walsh told BBC Breakfast: "This move is all about the future and I am absolutely delighted that we have reached this stage.
"We are creating a new, strong European airline and this is good news for BA, our customers and our shareholders."
He went on: "We recognise we have strong brands and these will be retained. The BA brand will continue to be a very strong brand.
"By putting these two airlines together we will be able to make savings."
Mr Walsh was speaking following Thursday night's announcement that the boards of the two carriers had agreed a binding memorandum of understanding setting out the basis for a proposed merger.
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The merger will provide annual savings of around £358 million. It would create an airline group with 419 aircraft which would fly to 205 destinations.
The merger would also create a new holding company (TopCo) with seven directors from each airline on its board.
