BA optimistic on regulatory approval of alliance with AA

British Airways is saying that, in its third attempt to cement closer cooperation with American Airlines, it is optimistic of achieving success, according to a report in The Financial Times.

In August, the airlines jointly announced plans to form closer ties to reduce operating costs and reduce their financial exposure in what continue to be challenging economic times.

The strengthened relationship would see the carriers cooperating on trans-Atlantic fares and synchronising schedules, but the approval of tough US anti-trust regulators is still necessary before any of that can occur.

On two separate occasions in the past, the US Department of Transportation blocked the formation of this type of alliance, citing concerns over the suppression of competition along with concerns about the foreign ownership of US carriers.

This time, however, BA is stressing that the attempt is occurring in a climate that is completely different, given the new Open Skies treaty and also the threat of collapse due to fuel costs making alliances necessary.

British Airways continues to reject opposition voiced by competitors on trans-Atlantic routes, such as Continental, Delta, Lufthansa, Northwest and Virgin Atlantic, that an approval of the plan would stifle competition.

Competitors have requested an opportunity to review the joint venture partner documents that were filed by American Airlines and British Airways, but the two carriers claim that the documents are “proprietary and commercially sensitive.”

www.britishairways.com