Iberia set to join BA alliance

IBERIA, the state-owned Spanish airline, is expected to join oneworld, the alliance of airlines created last month by British Airways and American Airlines to allow members to sell seats on each other's flights. Canadian Airlines, Cathay Pacific and Qantas, the Australian airline in which BA has a share stake, are already members of oneworld.

BA is expected to cement the alliance by buying up to 10 per cent of Iberia, due to be privatised next year. SEPI, the Spanish state holding company that controls Iberia, plans to sell 35 per cent of the company to institutional investors and offer a further 50 per cent to the general public.