LONDON, July 19 (Reuters) - British Airways Plc and Spanish airline Iberia said on Friday they signed a commercial deal to work more closely across their global networks, including the UK and Spain, where they face competition from no-frills carriers. "Our proposal for closer cooperation is a competitive response to the changing and challenging market environment and marks a step forward in our efforts to progress consolidation in Europe," BA Chief Executive Rod Eddington and Iberia Chairman Xabier de Irala said in a joint statement. ©2002 Reuters Limited.