From the Times today
The Government would not stop British Airways becoming a Spanish company as a result of a merger with Iberia, the Transport Secretary said yesterday.
BA and Iberia, the Spanish flag carrier, are believed to be near to agreeing merger terms in talks that have been continuing since July.
It is thought likely that the airlines would continue to operate as separate brands under a new operating company after the merger. However, it is not clear whether this parent company would be based in Spain or in Britain.