American Airlines, British Airways and Iberia sign joint business agreement

This relationship will benefit consumers by providing easy, seamless and convenient travel to more global destinations with better connections, improved flight schedules and enhanced frequent flyer benefits. It will improve customer choice by enabling the oneworld global alliance, of which American, British Airways and Iberia are key members, to compete more effectively around the world with other global alliances.

The airlines plan to file for worldwide anti-trust immunity from  the US Department of Transportation and will notify the appropriate regulatory authorities in the European Union.

In addition, fellow oneworld members Finnair and Royal Jordanian are included in the anti-trust immunity application.
Under the joint business agreement, the three airlines will cooperate commercially on flights between the United States, Mexico and Canada, and the European Union, Switzerland and Norway while continuing to operate as separate legal entities. They will expand their codeshare arrangements on flights within and beyond the EU and US, significantly increasing the number of destination choices that the airlines can offer customers.

The announcement is a significant step towards strengthening 
customer choice. This agreement would enable oneworld to compete 
effectively with rival global air alliances that have already received  transatlantic anti-trust immunity. Currently, six airlines in SkyTeam  and nine Star Alliance airlines have such immunity.

Customers will be able to travel more easily on the three airlines' combined route network which will serve 443 destinations in 106 countries with more than 6200 daily departures and more frequent and convenient schedule options than any of the three carriers could offer individually. By working together to provide links for connecting passengers, the airlines can expand customer choice by supporting routes that would not be economically viable for the individual airlines.


The joint business agreement will enable the airlines to reduce costs and attract new customers, helping to mitigate pressure on fares from record fuel costs. This means that the airlines will have greater ability to invest in their products, services and fleets. Employees and shareholders will also benefit from the agreement.


(c) Centre for Asia Pacific Aviation. Date posted: 15-Aug-08
 

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