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The recent merger talks between British Airways and Iberia have made very little headway. This is despite the fact that both airlines had offered reassurances that an imminent tie-up was underway.

Although a deal was hopefully going to be reached before summer, new reports say that this is unlikely. There turned out to be many more problems that had yet to be resolved for the merger than what the heads of the company revealed.

Willie Walsh, the British Airways chief executive, had said that the main block in the road was to clear up who has the financial control over the parent company for both airlines. However, now reports say that the number of problems stands firm at twelve. Among these problems are management positions, the main location of the companies’ headquarters, and even British Airways’ pension deficit.

The merger would allow both companies to still operate as separate brands. However, both brands would be united under a new main operating company. One problem that is still left open is whether the new main headquarters of the company would be located in Britain or Spain. Geoff Hoon, the Transport Secretary, said that British Airways would not become hindered at all by the merger with Iberia.

As of now, Iberia holds a larger market value due to the huge slump in share prices for British Airways. Evidence of a further downturn scared off investors as they learned that two of the Boeing 747 jets were covered up and not being used until passenger numbers pick up. The downturn in the market is the main reason for the low share prices for British Airways.

For more information visit: www.britishairways.com