Vueling and Clickair start merger talks-paper

MADRID, March 31 (Reuters) - Trade in shares in Spanish low-cost airline Vueling (VULG.MC) was suspended on Monday pending an announcement, the stock market regulator said.

Financial daily Cinco Dias earlier reported on Monday that Vueling and Clickair had signed a memorandum to start talks to merge the two companies.

No one was available at either airline to comment on the report.

Earlier this month, the head of Clickair, Alejandro Cruz said he would not rule out a merger between the two airlines.

A merger would help the pair better compete against rivals Easyjet (EZJ.L) and Ryanair (RYA.I). Both airlines use the same Airbus-320 planes and fly from Barcelona airport. (Reporting by Sarah Morris and Robert Hetz)