Walsh said this last bit on the Today programme, but slightly differently.

He clearly stated that "for any acquisition to take place, regulatory change was required".

The key regulatory hurdle at present across the aviation market is US-UK open skies. Ergo he must have been referring to the potential purchase of a US carrier which would be the only purchase affected by this regulatory issue.

Given the fact that BA has a pretty strong European premium network, and has synergies with Iberia through oneworld, I cannot see how a closer integration or merger would be of benefit.

The language, cultural and service level barriers to purchasing Iberia seem huge vs. a US carrier.

But whether a US carrier is an appealing target right now is another story.

I would put BA's money on on Indian Airline like Jet Airways as a more sensible investment in a growing market where BA needs exposure, and a gateway into develpoing economies and huge scope for growth.