BA pays pounds 215m for stake in Iberia

BRITISH AIRWAYS last night confirmed it would pay up to pounds 215m for a 9 per cent stake in Iberia, the Spanish airline, as part of a wide- ranging strategic alliance between the two airlines.

BA and Iberia will co-operate in a range of areas, including code-sharing on flights beyond the UK and Spain, and reciprocal participation in frequent flyer programmes. Iberia has accepted an invitation to join BA's Oneworld global airline alliance. American Airlines also said it was taking a 1 per cent stake in Iberia, which is being privatised by the Spanish government.