BA-Iberia announcement "in weeks"

More productive talks over summer - Walsh 

BA could seal its long running merger deal with Iberia by the end of the year.

Willie Walsh, the airline's ceo, said talks had made good progress since the Spanish airline changed management in July.

He told reporters in Washington that an announcement on the deal could be made "in the weeks ahead."

Mr Walsh also confirmed BA's interest in buying bmi and said a deal with Iberia would not rule this out.

The BA chief was in the US capital to make a speech to the International Aviation Club.

He told press afterwards that while the Iberia talks had "gone on considerably longer than I expected", they were now more productive.

This followed the appointment in the summer of Antonio Vazquez as Iberia's new chairman and ceo in place of Fernando Conte.

Mr Walsh was quoted as saying: "A merger between BA and Iberia represents a good step forward. It is part of the solution."

The talks between the two airlines have been continuing for many months and most of the £4.2bn all share merger deal have been thrashed out.

The outstanding issues concern the structure and financial arrangements for the new company which will oversee the two carriers.

Mr Walsh said it Washington that all key executive position had been agreed and added: "I don't think there are a lot of issues between us."

Mr Walsh also said BA was "clearly interested" in acquiring bmi, a loss making carrier which Lufthansa took over this summer.

The German national carrier has not yet decided what it will do with the airline which has 12% of the slots at Heathrow.

But it has opened its books to parties which might be interested in buying it.

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