British Airways said that it and Iberia have agreed on a proposed merger that would create a "new, leading European airline group" incorporated in Madrid, but with operational and financial headquarters in London. British Airways will have majority control (at 55 percent) of the new group.
Depending on how you count the dough and the stock, the deal is valued at up to $7 billion.
The new airline group would have 419 aircraft and fly to 205 destinations.
British Airways said that the new corporate group "will combine the two companies’ leading positions in the UK and Spain and enhance their strong presence in the international long-haul markets, while retaining the individual brands and current operations of each airline."
Both airlines retain membership in the oneworld Alliance.
The holding group's name is TopCo. British Airways' Willie Walsh will be the group CEO. Iberia's Antonio Vázquez will be group chairman and Martin Broughton will be deputy group chairman.
Here's an analysis in the Guardian that addresses the proposed quasi-merger between American Airlines and British Airways.
Here's the London Times main story on today's merger announcement.