European Union Approves British Airways Alliances with Iberia and American Airlines

The European Union has finally given British Airways, American Airlines and Iberia the clearance they need to continue with a tie-up they have been working on for a while now. On Wednesday, the European Commission said that they back the deal and give the airlines immunity from antitrust laws that ordinarily prevent businesses from coordinating schedules and prices.

This means that the carriers are halfway there in making a formal deal, as they still have to wait for approval from the US Department of Transport. If the plan gets the go ahead, the airlines will each give up 4 transatlantic landing and takeoff slots.

A deal between British Airways and American Airlines hasn’t come without opposition, however. Virgin Atlantic chief executive has been strongly against the plan, saying that it will create a monster monopoly that will hurt passengers and accusing the airlines of trying to gain more domination over key transatlantic markets. However, British Airways argues that cooperation between themselves and American Airlines will benefit customers by offering lower fares and more choices for destinations. They hope to start the business this autumn if US regulators approve soon enough.

This news comes after a merger between British Airways and Iberia has recently been approved by the European Commission, who said that they believe the combined company will still face rival competition on routes like London to Barcelona and Madrid. Although the carriers will still operate normally under their own brands, they will be combined under the name International Airlines Group. Together they will operate 419 planes to more than 200 destinations and carry about 62 million travelers a year.