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BA is willing to accept a 50-50 deal with Iberia according to El Economista, in exchange for the Spanish Airline to shoulder BA’s pension fund shortage. The new group would then have their headquarters in Madrid.

The share holder of Iberia Caja Madrid bank and Iberia itself had refused to make a comment as to whether or not there is a better offer from British Airways. It’s been noted that the two companies had been in the talks for a merger for over a year now but the deal for ownership split had been a problem as both could not agree on each other’s proposal.

British Airways has a pension deficit problem too and this also adds as a blockage to their deal with Iberia.

Iberia had recently had a change of leadership as their chairman had already stepped down and the position had been filled by Antonio Vasquez who is proven to be a very good dealmaker and some believe that his appointment would act as a boost for the possibility of the merger to push through.

No news yet as to whether or not the agreement would push through and if Iberia would accept the 50-5o ownership deal proposal by British Airways.