BA to get option to take over Iberia

British Airways will be guaranteed the right to take over Iberia under a crucial agreement among the consortium bidding for the Spanish flag carrier.

British Airways will be guaranteed the right to take over Iberia under a crucial agreement among the consortium bidding for the Spanish flag carrier. According to sources close to BA, the company has agreed with its partners that it should have the option to take sole control of the rival airline in three to five years.

A source close to the airline said: "It is part of the deal they are working on with Texas Pacific and the other Spanish investors. "

British Airways is thought to be keen to postpone a potential takeover of Iberia while it restructures its business and completes its move into Terminal 5. With Iberia going through a similar process of change with the expansion of Madrid airport and a raft of low-cost airlines competing for European traffic from Spain, BA executives are understood to be happy to leave the current Iberia management in place for the short to medium term.

The source said: "Now is not the time to take on the challenge of restructuring another business. BA has enough to do in the UK. If they don't want it they could sell it to another partner or they may even look to refloat the business in a few years' time."

By Jonathan Russell, Sunday Telegraph
© Copyright of Telegraph Media Group Limited 2007.

Read the rest of article's at: www.telegraph.co.uk