British Airways moves closer to Iberia deal

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The proposed merger between British Airways (BA) and Spanish operator Iberia is drawing nearer.

Chief executive of BA, Willie Walsh, revealed that about £400 million (AUD$874 million) in synergies have been pinpointed and the only sticking point which remains is the powers of new parent firm, Topco.

Mr Walsh commented: "The single area of difficulty between us relates to governance and specifically the financial control that Topco can exercise over the two operating companies."

He added that the only way to guarantee synergies was "if Topco can exercise financial control".

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British Airways was formed itself by a merger in 1974, when the British Overseas Airways Corporation and British European Airways joined forces.