BA's advances towards spanish carrier Iberia may spark a battle for the CFO position of the merged company.

Keith Williams has been CFO since 2006 but media commentators have said the Spanish company may insist on having one of its own in the key position if the deal is to be pushed through.

Williams is in a strong position having joined the airline in 1998 as head of taxation. He was appointed group treasurer in 2000.

It will take several months to hammer out merger terms and finalise a joint business and integration plan for the combined group, BA said.

British Airways' chief executive, Willie Walsh, said: 'The aviation landscape is changing and airline consolidation is long overdue. The combined balance sheet, anticipated synergies and network fit between the airlines make a merger an attractive proposition, particularly in the current economic environment. [BA has] had a successful relationship with Iberia for a decade and are confident that both companies' shareholders would benefit from the proposed tie-up.'