BA seals deal with AA...

...other airlines probably doomed. The move includes deals with Iberia (which was previously known) and apparently two smaller airlines in Europe. The deal still needs approval from the US regulators as it might violate foreign ownership rules. Details are a bit vague at the moment, and I'm not sure whether this goes farther than just a casual airline alliance as most people are reporting (given the airlines are already in the same alliance I would guess this deal is a bit more 'serious'). Still, perhaps some good regarding VX and VS cooperation can come out of this if the US decides to agree. Clearly memories of 'No BA/AA' come back to mind with VS's disagreement of the deal.

Just received an email from AA about it, so I prsume it's ok to quote it all...

I want to thank you for your support of American Airlines and share some exciting news. Today American Airlines, British Airways and Iberia signed a Joint Business Agreement (JBA) to cooperate on flights between North America and Europe, and announced that we plan to expand our global cooperation. Though our three airlines will continue to operate as separate legal entities Ð with our own fleets, employees and brands Ð we will cooperate more closely to improve travel choices, offer more convenient schedules and give customers more opportunities to earn and redeem frequent flyer miles.

Today's announcement represents good news for travelers. Our customers will be able to travel more easily on a oneworld network that includes nearly 9,000 daily departures to 663 destinations in 134 countries via flight schedules that will be coordinated to deliver more conveniences and choices. As an example, here in the U.S., customers and communities will gain improved access to 207 new international destinations just by our ability to link our networks.

We also plan to expand our codesharing and offer combinable fares, allowing customers to choose from multiple routings across the entire oneworld network rather than just those flights marketed individually by each airline. This will also allow us to offer our customers and communities greater access to more competitive fares and ultimately the ability to fly on new and expanded routes.

As a result, you'll have greater opportunities to earn and redeem your American Airlines AAdvantage miles on each airline's transatlantic flights. Reciprocal lounge access with British Airways, Iberia and other oneworld members will continue as it is today Ð however, with an expanded network and more codesharing choices, customers will have more opportunities to take advantage of this valuable benefit.

As a key first step, our three airlines Ð along with Finnair and Royal Jordanian, our transatlantic partners in the oneworld global alliance Ð plan to apply today with the U.S. Department of Transportation (DOT) to receive global antitrust immunity. This will not only help us work together more closely for the benefit of our customers, employees and shareholders, but will also allow the oneworld alliance to compete more effectively with SkyTeam and the Star Alliance, which already enjoy broad immunity among their global air alliance members.

Although these changes, if approved, will take some time to be implemented, we will be in touch as new information becomes available. In the meantime, please visit http://www.aa.com for more information.

We hope that you are excited about the great benefits and choices that will take place from this proposed relationship. We will keep you posted on the latest developments. Again, I want to thank you for flying American Airlines.

Sincerely yours,

Dan Garton
Executive Vice President, Marketing

EDIT: locutus - you beat me to it... As the above email states, it will be easier to share miles.... blah blah blah (I've heard that one before...)

Sounds more like when Carnival bought up all the cruise lines like Princess, Cunard, etc.. than some giant MERGER. They also had plans to make their 'loyalty programs' more interchangeable, but that has yet to happen.

All I know is it's not going to make me EVER fly a domestic (US) carrier internationally if I have any other choice, nor is it going to make me fly BA to the UK unless I can get the same level of class/service for less than VS. I don't see that happening any time soon.

I for one think this is an excellent move for many reasons (but remain scepticle that this will help drive down prices). Combining FF miles and ending the ridiculous rule that prevents you using BA miles to book AA transatlantic flights (and vice versa more usually) will be a good step.

It should also mean that a precedent has been set to link VA and VS together more closely.

Virgin and SRB will bleat, but I think they should save their energy and concentrate on what makes VS better if not not bigger. Nor is VS really comparable to either BA or AA apart from transatlantic routings.

I think that this is the first of many future mergers and the ongoing consolidation of the industry as a whole. While VS are complaining now I don't think it will be long before they go the same way.

Miopyk[8D]

If this all goes ahead don't BA have to give up some of their LHR slots?

What I'm not clear on is what has changed here to make this appear to become feasible?

The stupid thing about not being able to collect FF credit on each others' transatlantic flights has always been anti-consumer in my book.

H

Perhaps with Phase II of Open Skies Agreement we'll see an eventual merge between both companies...

Looks like AA are joining BA in more ways than one: Big fines
Economy, yes - but not at the expense of safety.

I will have a small wager that BMI are next to merge with someone

Originally posted by OxfordNick
I will have a small wager that BMI are next to merge with someone

And will LH be involved as well as another?

Originally posted by OxfordNick
I will have a small wager that BMI are next to merge with someone

Well time will tell....BD being taken over/merging rumour has been going around for donkeys years.


With regards to the BA/IB/AA deal it makes sense. It allows One World to be as strong as *a and Skyteam. It is going to be very interesting to see how KL/AF/DL(+NW) react and also what sort of reaction this creates from both the LH Group and the Asian based airlines. WHilst the agreement is really only TATL with BA/IB/AA surely it will only be a matter of time before some kind of agreement involving Asia codeshares comes into place.

What will also be interesting is to see if BA/AA are forced to drop frequencies ex LHR due to have too much of monopoly. Surely DL will be the airline to gain if they are forced to hand over some frequencies (eg: LHR-JFK).