Both are membersof Oneworld alliance

British Airways and Spain’s Iberia, both members of the Oneworld global alliance, said they have started discussions aimed at a possible merger. BA said the talks “are supported unanimously by the boards of both companies,” and that if they are successful, both of the airlines would still keep their existing brand identities. BA CEO Willie Walsh said that airline consolidation in the current environment “is long overdue…We’ve had a successful relationship with Iberia for a decade, and are confident that both companies’ shareholders would benefit from the proposed tie-up.” British Airways acquired a 9 percent stake in Iberia nine years ago, and recently increased that stake to more than 13 percent. Iberia said it recently bought a 3 percent stake in British Airways. The companies said it could take “several months” to complete the merger talks. If they are successful, it wouldn’t be the first merger of two big European carriers – KLM and Air France are already part of a merged company.