Three transatlantic carriers sign joint business agreement

British Airways, American Airlines and Iberia of Spain have signed a “joint business agreement” for trans-Atlantic flights connecting North America and Europe.

All three carriers have said that this agreement will help them deal with the high cost of fuel and lower passenger demand.

In a statement issued jointly, the airlines stressed that this deal would directly benefit passengers by providing “easy, seamless and convenient travel to more global destinations.” The next step for the airlines is to seek immunity from European and UK regulators from competition restrictions, so the deal can proceed.

Under the new joint business agreement, the three carriers will cooperate on a commercial basis on flights operated between the US, Canada and Mexico, and in the EU, Norway and Switzerland, while also continuing to function as separate legal entities.

Part of the agreement will see them expanding on current joint-marketing code-share arrangements that exist on flights both within and beyond the EU and the US, which will significantly increase the number of destinations served and meaning many additional choices for their customers.

BA has been quoted as saying that its customers would benefit by ease of travel over the combined route network of the three individual carriers, which serves 106 countries and 443 destinations.

“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,” a spokesman for BA added.

www.britishairways.com