Today American Airlines, British Airways and Iberia have signed a joint business agreement on flights between North America and Europe and plan to expand their global cooperation.
This deal will benefit customers by providing easy, seamless and convenient travel to more global destinations with better connections, improved flight schedules and enhanced frequent flyer benefits. In addition, this 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.
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.
Customers will also benefit from expanded opportunities to earn and redeem frequent flyer miles and elite tier benefits on flights worldwide and continued reciprocal airport lounge access.
Gerard Arpey, the chairman and chief executive of AMR Corp., the parent company of American Airlines, said: “We believe our proposed cooperation is an important step towards ensuring that we can compete effectively with rival alliances and manage through the challenges of record fuel prices and growing economic concerns. In addition, we believe we will be more effective competitors with greater ability to invest in our products and services. As a result, this business agreement will create positive outcomes for our customers, shareholders, employees and the communities we serve.”
Willie Walsh, British Airways’ chief executive, said: “This strategic relationship strengthens competition by providing consumers with easier journeys to more destinations with better aligned schedules and frequencies. We are applying for EU US anti-trust immunity in a changed regulatory world where London Heathrow is open to any US or EU airline that wants to fly to the United States and where rival alliances have immunity.”
Fernando Conte, Iberia chairman and chief executive, said: “Customers will benefit the most from this relationship as they will have better connections to more destinations around the world. It will increase competition as the three global airline alliances will play under the same rules. We are taking a very important step towards consolidation which is necessary in today’s aviation industry.”
