London  - British Airways (BA) and Spanish airline Iberia said Tuesday they were in talks about a possible merger that would help both companies in the "current economic environment."

The firms said the British Airways and Iberia brands would be retained as part of a combined group.

However, it would take several months to reach an agreement on the terms of a possible merger.

BA chief executive Willie Walsh said the proposed merger would help the airlines in the current economic environment.

BA's share price rose by 8 per cent in London on the news.

Vienna  - Austrian Airlines should seek a strategic partner through privatization, the carrier's supervisory board chairman said Monday, as the company reported losses of 48.7 million Euros (76.5 million dollars) in the first half of 2008.

Austrian Airline's supervisory board took note of a study by Boston Consulting on Monday, which said that long-term financial stability could only be achieved by joining a strategic partner.

Singapore - Soaring jet fuel costs and reduced demand for air travel left Singapore Airlines (SIA) with a 15 per cent fall in quarterly profits, the carrier said on Monday.

Net profit for April through June was 358.6 million Singapore dollars (263 million US dollars,) compared with 424 million Singapore dollars (316.4 million US dollars) a year ago.

"The price of jet fuel has risen more than 75 per cent year-on- year, and the strains on financial markets have not abated," SIA said in a statement. Trends are being tracked closely "and are in a good position to react nimbly," the carrier added.

Hamburg - European aircraft manufacturer Airbus delivered the first A380 from its Hamburg plant Monday, handing over the superjumbo jet to Dubai's Emirates airline at a colourful ceremony attended by the chief executives of the two companies and hundreds of staff.

The aircraft is the first of 58 ordered by Emirates, which is to date the largest customer for the flagship of the Airbus fleet.

Emirates chief Sheikh Ahmed bin Saeed al-Maktoum said the American continent was one of the company's key markets and that the airline was pleased to be the first to enter the US market with the new A380.

Dublin - Ireland's low-fare airline Ryanair warned Monday that it is bracing for red-ink of up to 60 million euros (95 million dollars) in the fiscal 2008/2009 year amid surging fuel costs.

At best, the airline said in presenting first-quarter figures, the company could show break-even results.

Ryanair said that in the first quarter starting April 1, it managed a profit of 21 million euros, plunging 85 per cent from the same quarter a year earlier.

Aviation fuel in the quarter cost the airline 367 million euros, surging 93 per cent from the same quarter last year. Ryanair said fuel now accounts for half of the airline's expenses, compared with 36 per cent a year ago.

Vienna  - Managements consultants are advising Austrian Airlines that Lufthansa would be the best candidate to take over the ailing carrier, the Austrian daily Die Presse reported Friday.

Boston Consulting has been hired by Austrian Airlines' management to evaluate various cooperation scenarios. The consultant's report mentions Russian carrier Aeroflot as the only other viable cooperation partner, Die Presse wrote.

Austrian Airlines expects to end the financial year 2008 with losses between 70 and 90 million euros (110 and 141 million dollars), due in large part to higher fuel prices.