LONDON (Thomson Financial) - British Airways Plc and American Airlines have
reached agreement on a transcontinental joint venture, and aim to add Spain's
Iberia Lineas Aereas d'Espana SA to the accord by the end of the month, reports
the Financial Times, citing company executives.
The joint venture should pave the way for the three airlines to seek
antitrust immunity from U.S. officials by August, freeing them to co-ordinate
schedules and fares, and share revenue.
The timetable for the deal, originally revealed in press reports earlier
this month, marks a slight setback for the airlines, which had planned to submit
their antitrust application this month, executives at the carriers told the
paper.
On July 6 The Observer newspaper reported that British Airways was poised to
unveil a transatlantic alliance with AMR Corp unit American Airlines and Iberia
of Spain.
Analysts at the time told the paper the tie-up between BA and AA could pave
the way for a full merger once U.S. foreign ownership rules are liberalised.
ben.deighton@thomsonreuters.com
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