Browse > Home / Commercial / American Airlines, British Airways, and Iberia Sign Joint Business Agreement

American Airlines, British Airways, and Iberia Sign Joint Business Agreement

Written by thomas · Filed Under Commercial 

August 18, 2008

thomas

oneworld Global Alliance Members Apply For Antitrust Immunity To Create
Worldwide Cooperation
Customers to Benefit from Expanded Network, Improved Choices and Services,
Reciprocal Frequent Flyer and Airport Lounge Access and Enhanced
Competition from oneworld

FORT WORTH, Texas, LONDON and MADRID /PRNewswire-FirstCall/ — American
Airlines (NYSE: AMR), British Airways (LSE: BAY.L), and Iberia (IGBM:
IBLA.MC) have signed a joint business agreement on flights between North
America and Europe and plan to expand their global cooperation.

This relationship will benefit consumers by providing easy, seamless
and convenient travel to more global destinations with better connections,
improved flight schedules, and enhanced frequent flyer benefits. It 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.

The airlines plan to file today for worldwide antitrust immunity from
the U.S. Department of Transportation and will notify the appropriate
regulatory authorities in the European Union.

In addition, fellow oneworld members Finnair and Royal Jordanian are
included in the antitrust immunity application.

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 U.S., significantly increasing the
number of destination choices that the airlines can offer customers.

Today’s announcement is a significant step towards strengthening
customer choice. This agreement will enable oneworld to compete effectively
with rival global air alliances that have already received transatlantic
antitrust immunity. Currently, six airlines in SkyTeam and nine Star
Alliance airlines have such immunity.

Customers will be able to travel more easily on the three airlines’
combined route network which will serve 443 destinations in 106 countries
with nearly 6,300 daily departures and more frequent and convenient
schedule options than any of the three carriers could offer individually.
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.

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.

The joint business agreement will enable the airlines to reduce costs
and attract new customers, helping to mitigate pressure on fares from
record fuel costs. This means that the airlines will have greater ability
to invest in their products, services and fleets. Employees and
shareholders will also benefit from the agreement.

Gerard Arpey, Chairman and CEO of AMR Corp., the parent 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-U.S. antitrust immunity in a changed
regulatory world where London Heathrow is open to any U.S. 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.”

» Próximo Post - Copa Holdings Reports Earnings of US$30.4 Million and EPS of US$0.70 for 2Q08
« Post Aneterior - Air T, Inc. Receives Orders for Four Extended Reach Deicers

Comments

¿Tiene algo que decir?

You must be logged in to post a comment.