Page last updated at 16:03 GMT, Thursday, 8 April 2010 17:03 UK

British Airways and Iberia sign merger agreement

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A merger between British Airways and the Spanish airline Iberia has moved a step closer with the signing of an agreement setting out the terms of their deal.

BA says the group will operate 419 aircraft, flying to more than 200 destinations, and carry a total of 62 million passengers a year.

The tie-up now has to be approved by competition authorities and shareholders of the two airlines.

Robert Peston reports.

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