No timeline for Iberia-BA tie-up talks: chairman
Spanish flag carrier Iberia no longer has a timeline for completing talks on a tie-up with British Aiways as its priority is to face up to the economic slowdown, its chairman said on Wednesday.
"We continue to negotiate," Iberia chairman Fernando Conte told a news conference when asked if the talks had been put on hold because of the downturn which caused its net loss to widen during the first-quarter of 2009.
He refused to give a deadline for the tie-up, saying only that the airline should "concentrate on the reestablishment of its financial solidity."
"There is no pre-established rhythm" for the merger, he added.
At the beginning of February, Conte said the talks were entering their final stretch and he expected a "preliminary decision" on a tie-up between the two airlines would be reached in March.
But since then the global economic downturn has hit both airlines, complicating the talks which have also been hampered by discussions over pensions.
"It will be important for us to see the result of the talks between BA and its pensions fund," said Conte.
Iberia has introduced a cost-cutting plan, which included a freeze on all new hiring and the postponement of the delivery of new aircraft, after it posted a first-quarter loss of 92.6 million euros (80 million pounds).
That compares to a loss of 0.4 million euros posted during the same time last year.
Iberia and BA last year agreed to merge in a planned all-share transaction which would create the world's third-biggest airline by revenue.
Copyright 2009 AFP European Edition
