London - Spain's largest airline Iberia and British Airways have officially agreed on a merger, both companies announced late Thursday. The merger, which was agreed after 16 months of negotiations, is to be completed by the end of 2010, keeping both brands in operation.
British Airways would control 55 per cent of the combined airline with Iberia holding 45 per cent.
The two sides hope to saive a combined 400 million euros (598 million dollars) annually. They would have a total of 419 aircraft serving 205 destinations. The pair had a combined 62 million passengers in 2008.
