The £5 billion merger between British Airways, once the flag carrier of a nation, and Spanish national airline Iberia is to go ahead by December, according to UK press reports.

Truly depressing is that the new holding company will be known as “International Airlines”.

“International Airlines” is the kind of name that looks better when it’s emblazoned on the side of ratty, oil-stained propeller-driven freighter aircraft doing short-haul grunt work out of dodgy international airports in the Caribbean. Lucky, then, that both airlines will continue to fly under their respective colours. For now, anyway.

The more pressing question is whether the merger will save them? Both airlines are on the ropes. BA is expected to post a pre-tax loss of about £578m according to Reuters poll, while Iberia posted €435m pre-tax loss in 2009.

At one time, the proposed merger – which has been on the cards for some time – was presented in such a way it made British Airways look like the winner while helping out an ailing Iberia. Not anymore, not after strikes, massive financial losses and a slew of cancelled flights over Easter. The Times reports from London that should Iberia be unhappy with BA’s pension recovery plan, it reserves the right to walk away from the deal.

Still, given the continuing troubles in the airline business, maybe the merger is the only way forward.

Of course, if appearances really are everything, that will leave Virgin Atlantic as Great Britain’s national airline – Virgin already has the Union Jack on its tailfins.

Sir Richard must be laughing most heartily.