British Airways, Iberia sign merger deal

London: British Airways PLC and Spain's Iberia SA have signed a merger deal, paving the way for the creation one of the world's biggest airline groups.

The pair say they expect the merger announced Thursday to be completed by the end of this year. It follows a provisional agreement reached at the end of last year.

The merged group will have 408 aircraft flying to 200 destinations, carrying more than 58 million passengers each year.

The carriers say the deal will save the airlines $400 million ($530 million) a year.