A merger between British Airways and Spain´s national carrier Iberia has been approved by the European Commission.

The decision came at the end of an inquiry into whether the link-up – creating the world´s third-largest airline – would breach EU rules on fair competition.

A Commission statement said: “The Commission´s investigation confirmed that the merged entity will also continue to be subject to competition from a number of competitors on the markets for air cargo transport and ground handling services.”

The decision comes as the Commission investigates what it called “extensive” levels of co-operation on transatlantic routes proposed between BA, Iberia and American Airlines – members of the “oneworld alliance”.

The arrangements involve joint management of schedules, pricing and revenue-sharing which, Commission officials have warned, could breach EU rules on restrictive business practices.

The three airlines received a Statement of Objections last October.

via The Press Association: Europe approves BA-Iberia merger.