British Airways-Iberia deal aims giant blow at rivals

British Airways is aiming to hold its ranking as a giant in the skies through a tie-up with Spanish carrier Iberia that will give it access to South American routes, the group's boss said on Friday.
The tie-up is being seen as a move to avoid being sidelined by rivals Air France-KLM and Lufthansa as the economic crisis and the rise of low-cost airlines drives airline alliances and steep cost cutting.
However, BA chief executive Willie Walsh also admitted that there would be more job cuts as a result of the proposed marriage, sparking concern among trade unions in Britain and Spain.
The deal, creating Europe's second-biggest airline by market capitalisation after Lufthansa, will combine Iberia's strong presence in Latin America with BA's solid position in North America, Asia-Pacific and Africa.
The pair agreed late Thursday on a four-billion-pound (4.5-billion-euro, 6.6-billion-dollar) merger to form one of the world's biggest airlines.
Walsh said his loss-making company did not want to be "left behind" after a series of critical industry alliances, citing the 2003 creation of Air France-KLM and a series of European acquisitions by Germany's Lufthansa.