BA announces American Airlines and Iberia deal

David Robertson, Business Correspondent British Airways and American Airlines announced plans yesterday to reshape the airline industry with a deal that could herald the creation of a supercarrier. BA and AA have applied to regulators in the United States and Europe for antitrust immunity that would permit them to combine their route networks, pricing, sales, marketing and purchasing power. Iberia, the Spanish airline; Finnair and Royal Jordanian are included in the submission but are secondary players. All five carriers are members of oneworld, a marketing group that allows airlines to sell connecting flights offered by other members. The new alliance would go much farther: - BA and AA would no longer compete against each other on key routes; rather than offering head-to-head flights, they would spread them to provide... [read full story]