British Airways teams up with American Airlines

British Airways officially announced earlier today that it has decided to create an alliance with American Airlines, allowing for close cooperation on transatlantic routes. According to BBC News, this new partnership will allow the two flag carriers to coordinate their fares, route networks and schedules in the coming months, as well as share revenue on these flights. Additionally, it has also been announced that Iberia-Spain’s flag carrier– may be involved in this as well, as it has decided to merge with British Airways. All three airlines have developed a history of cooperation, due to their membership in the oneworld alliance.

The terms of this deal stipulate close cooperation between British Airways and American Airlines, not only on UK to US flights, but also on transatlantic routes to and from Canada, Mexico, Switzerland and Norway. Whether the fusion will go ahead, however, is another question, as regulators in the US must still approve the deal and they will have to check if the partnership is in accordance with American laws limiting the foreign ownership of airlines. While critics-including Richard Branson of Virgin Atlantic-have pointed out that the merger will bring higher airfares for passengers, due to a decrease in competition, British Airways chief executive Willie Walsh argued that customers stand to benefit, noting that the deal will ensure “easier journeys to more destinations, with better aligned schedules and frequencies.” Walsh, however, did not address the issue of rising ticket prices following a merger. If the deal does go ahead, the British Airways-American Airlines-Iberia merger would create the world’s largest airline.

Thank you to BBC News for the initial report.

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