BA And Iberia Snuggle Closer

BA said that the two airlines, which are the leading European members of the eight-strong Oneworld alliance, expected to cut costs and improve services.

The UK carrier is seeking to strengthen its bilateral links with all the Oneworld members and has informed the European Commission of its plans to forge closer commercial links with Finnair and Aer Lingus as it tries to counter growing competition from the rival Star and SkyTeam alliances and to reduce its losses on short haul services in Europe.

BA and Iberia said that they would code share, or sell seats on each other's flights, much more widely across their networks.

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