BA, Iberia in merger talks

Jul 29 - British Airways and Spain's Iberia are in talks to forge the latest in a series of European airline mergers.

The UK carrier says the talks focus on an all-share merger, which sent shares in both airlines higher.

Some have expected more consolidation between European airlines as they struggle with the dual threats of soaring fuel costs and falling consumer demand.

The merger could also form the basis of a three-way transatlantic tie-up.

Joanna Partridge reports.