LONDON — British Airways said it would not sign a merger agreement with Spanish airline Iberia in the first quarter of 2010, although a deal to create the world's third largest airline by revenue deal will be sealed soon.
"We will not sign the merger agreement with Iberia in the first quarter of 2010. This is due to technical issues that need to be resolved and we anticipate that the agreement will be signed in due course," a BA spokesman said.
An Iberia spokesman said an agreement would be signed shortly, and that technical issues would not derail the deal.
Both carriers had previously said they would sign a definitive deal by the end of March, but BA has been distracted by recent cabin crew strikes and could face more stoppages if it cannot reach a deal with unions. — Reuters
