Carriers say merger a good deal

British Airways PLC and Spain’s Iberia SA talked up the benefits of a proposed $7 billion merger on Friday, dismissing criticisms that the deal could increase fares, reduce competition and drag down service standards at Britain’s flagship carrier.

The agreement ends more than a year of talks between British Airways and Iberia aimed at finding a way for the two money-losing carriers to share resources amid slumping demand for air travel.

But while they argued that combining the British carrier’sNorth American routes with Iberia’s Latin America services would be good for shareholders and travelers alike, there were questions about British Airways’ growing dominance given it’s also waiting for the green light on a tie-up with ...