British Airways (BA) and Iberia Airlines are about to finalize a merger agreement, which would help in streamlining the cargo haulage via airfreight.

The two flight operators are looking to strengthen their businesses after the recession affected them, which caused lower cargo and passenger numbers.

The merger will give birth to a new company, Topco, which will stand in competition with Lufthansa and Air France-KLM as one of the largest airlines on the continent. The airline is expected to earn € 400 million in five years duration.