American Airlines British Airways Joint Business Agreement

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According to the statement, «This agreement would allow oneworld to effectively compete with rival global air alliances that have already enjoyed transatlantic immunity. Currently, six SkyTeam airlines and nine Star Alliance airlines enjoy such immunity. «As an important first step, our three airlines – along with Finnair and Royal Jordanian, our transatlantic partners in the oneworld global alliance – are now considering a global immunity application to the U.S. Department of Transportation (DOT). Not only will this help us work more closely together for the benefit of our customers, employees and shareholders, but it will also allow the oneworld alliance to compete more effectively with SkyTeam and Star Alliance, which already enjoy broad immunity among their members in the global airline alliance,» added Garton. This is the strange situation we find ourselves in. British Airways` financial blow to dismantle the transatlantic joint venture and compete with American Airlines may be greater than its current financial blow due to competition with Virgin Atlantic and Norwegian. Against the parties under investigation: American Airlines Group Inc; International Consolidated Airlines Group SA (including Aer Lingus Limited, British Airways plc and Iberia Léneas Aéreas de Espaa SA); And Finnair OYJ. Aer Lingus is a signatory to the agreement, but does not yet operate services under the Atlantic Joint Business Agreement, as it is subject to the United Stated Department of Transportation, which renews antitrust immunity (under review). Gerard Arpey, President and Chief Executive Officer of AMR Corp., the parent company of American Airlines, said: «We believe our proposed cooperation is an important step in ensuring that we can truly compete with rival alliances and face 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 produce positive results for our customers, shareholders, employees and the communities we serve. As early as 2018, the Competition markets Authority opened an investigation into the transatlantic joint venture between BA, American Airlines, Iberia and Finnair. Atlantic Joint Business, American Airlines, British Airways, Finnair and Iberia airlines are opening additional routes across the Atlantic for the 2020 summer season.

A total of 8 new lines will be added next summer. With these additions, the four airlines will together offer more than 14,500 additional seats on a total of 105 routes with more than 1,000 weekly frequencies between the two continents. In the event of release by competition authorities, the new agreements would help airlines coordinate flight schedules and prices, similar to the North Atlantic revenue-sharing agreement, which already exists between IAG and American Airlines. FORT WORTH, LONDON and MADRID – American Airlines, British Airways and Iberia have signed a joint trade agreement on flights between North America and Europe and plan to expand their global cooperation. As part of the Joint Enterprise Agreement, the three airlines will continue to cooperate as separate legal entities on flights between the United States, Mexico and Canada, as well as with the European Union, Switzerland and Norway.

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