Merger talks between British Airways and Iberia are expected to gather new momentum after the ousting of the Spanish flag carrier’s chairman.

Fernando Conte stepped down yesterday and will be replaced by Antonio Vázquez, the former chief executive of Altadis, the tobacco producer.

Iberia said that Mr Conte wanted to step down before his 60th birthday next year. However, sources close to the airline claimed he had been forced to go.

The negotiations between BA and Iberia have stalled in effect in recent months because the two sides have failed to agree on key issues such as command structures and the extent of integration.

The removal of Mr Conte is rumoured to have been initiated by Caja Madrid, Iberia’s largest shareholder, because of the lack of progress with BA. Sources close to the talks said that Mr Conte’s removal would “not be unhelpful”.

BA owns about 10 per cent of Iberia and has a seat on its board, so the British carrier would have been aware of Mr Conte’s departure.

Mr Vázquez worked at Altadis for 15 years and was responsible for selling the company two years ago to Imperial Tobacco for €12.6 billion. Mr Vázquez was also a board director at Iberia between 2005 and 2007.

Willie Walsh, the chief executive of BA, said: “We are confident that his business and leadership skills will ensure that the relationship with British Airways will continue to develop.

“We look forward to working with him on all matters, including the continuing merger discussions.”

Iberia also appointed Rafael Sánchez-Lozano as managing director and chief operating officer yesterday.

BA and Iberia announced last August that they were in merger talks to create one of Europe’s largest carriers. The talks hit a number of roadblocks, including difficulties in pricing the deficit in BA’s pension fund as stock markets around the world collapsed.

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