Yes, it would seem as if this is a definite deal according to the media though the truth is probably very different. I except that a merger presumably would occur with the current emphasis on consolidation in Europe, therefore Iberia and British Airways becoming partners is the key to future success. However, firstly, as stated in the article, British Airways must be restored to former fortune, which seems to be well in process. Then once any formal merger talks take place you must consider the changes to existing air treaties that will be needed before these international airlines are allowed to merge. Existing bilateral would be worked out eventually though it would take time. But again there is recognition within the industry that consolidation is needed if some European carriers are to survive. With the hope that changes may be accelerated if the US and the EU can find a way forward over the transatlantic “open skies” predicament, hopefully the British Airways and Iberia deal could successfully be worked out in the future.
But on the whole it is a positive step for both airlines.
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