More of Spain in the UK

British Airways and Spanish airline Iberia have signed a deal to merge and create one of the world's biggest airline groups. The merger, which was provisionally agreed in November last year, is expected to be completed by the end of the year. It is expected to save the airlines 400m euros ($533m; £350m) a year.
The new company will be called International Airlines Group, but the BA and Iberia brands will continue to operate as normal. The company will have its headquarters in London, with BA shareholders retaining 55% ownership of the company. Sounds like a take over to me!
The merger is seen as a chance for the two airlines to cut costs following two very tough years for the airline industry.  Both BA and Iberia are expected to report heavy losses this year, with BA predicted to announce its biggest annual loss since privatisation.
The airlines are also regarded as a good match, having few overlapping routes. The merger will also allow the company to compete more effectively with other European giants including Air France-KLM and Germany's Lufthansa. The airlines are expected to complete the merger by December, subject to approval from regulators and shareholders.
One stumbling block could be BA's pension problems. Its two final-salary pension schemes have a combined deficit of £3.7bn, which it needs to cut. Last month, the airline agreed plans with unions to increase pension contributions to close the deficit.
But Iberia still has the option to call off the merger if it decides that the plans are not satisfactory. Plans for a tie-up between BA and Iberia date back long before the current troubles in the airline industry. The two airlines first began working together in 1999 following the privatisation of the Spanish flag-carrier.