British Airways will not mount any formal resistance to the UK Government's policy to abolish plans for a third runway at London Heathrow.
Speaking during the IATA annual general meeting in Berlin, BA chief executive Willie Walsh said: "We think it's the wrong decision but we respect [it].
"We're not going to be undertaking any campaign to get that reversed."
BA's merger with Iberia, he says, will give the carrier room to expand at Madrid Barajas Airport. "If the UK doesn't want to participate in future growth, it will just [go abroad].
"With capacity available at Madrid, London's loss will be Madrid's gain."