View Full Version : BA joins AA and Iberia in new venture... surely not

15th Aug 2008, 01:51
In my mailbox this morning...

"I am writing to you to ensure that you are one of the first to hear about the latest news from British Airways. Today we have reached agreement with American Airlines and Iberia to form a joint business, which if approved, will enable us to co-operate on flights from the UK and Continental Europe to the US, Canada and Mexico.

We plan to file for worldwide anti-trust immunity from the US Department of Transportation. The European Commission will also review the deal. If successful, we will be able to form a closer working relationship providing significant benefits for customers. All three airlines will continue to operate under our separate brands.

Closer working will create opportunities to enhance customer benefits. It will enable us to better align schedules giving more access to destinations and improving connections through key airports. Other benefits for customers include greater opportunities to earn and use frequent flyer miles on the other airlines' transatlantic network along with enhanced frequent flyer tier features. Our Executive Club members will continue to be able to enjoy lounge access with British Airways and its oneworld partners as they do today.

Our overall aim is to continue to deliver an upgraded travel experience to you. Financial efficiencies that the joint business agreement will give British Airways will help us to continue to invest further in our products and services, despite the demanding economic environment that the airline industry faces.

It is both a challenging and exciting time for British Airways and I will ensure that you are updated on developments as the proposed venture nears completion.

Warm regards,

Sarah Keyes
Executive Club Manager"


15th Aug 2008, 07:28
This article throws even Finnair and Royal Jordanian into the mix. What remains to be seen is how this increased commercial cooperation and additional codesharing pans out. Until we know more details itīs hard to say what, if anything, will happen.

European Economy, Lifestyle & Technology Blog BA, American, and Iberia Announce Commercial Tie-Up - BusinessWeek (http://www.businessweek.com/globalbiz/blog/europeinsight/archives/2008/08/ba_american_and.html)

15th Aug 2008, 11:10
What sort of dangerous burden would that represent for BA as US airlines struggle to keep losses not too huge ??? I find that a bit scary.

15th Aug 2008, 12:28
dangerous burden

Zero - this is a co-operation deal not a merger.

Mainly involves codesharing and reservations alignment. The first tangible sign would be AA operating JFK-MAN (with BA/IB flight numbers) after we pull out later this year.

bar none
15th Aug 2008, 13:44
I cannot understand why Richard Branson is objecting so fiercely to the tie up. He says that it will form an alliance that is so big and powerfull that it will be against the customers best interests.
Surely if it is against the customers best interests then they will fly with Virgin. Unless of course he is not so confident of his own product!

15th Aug 2008, 14:09
This is the thread already running in AA&R