AA, BA and Iberia sign Joint Business Agreement
Published: 15 Aug 2008
American Airlines, British Airways and Iberia have signed a Joint Business Agreement (JBA) to cooperate on flights between North America and Europe.
Though the three airlines will continue to operate as separate legal entities – with their own fleets, employees and brands – they will cooperate more closely to improve travel choices, offer more convenient schedules and give customers more opportunities to earn and redeem frequent flyer miles.
As per the information available, the agreement is the closest alliance the trio can form under strict US airline ownership laws that all but rule out a full merger and follows two earlier failed attempts by BA and Fort Worth-based American to forge closer ties.
Gerard Arpey, chief executive of American Airlines parent company AMR Corp., thinks the deal could receive approval this year.
"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 US, customers and communities will gain improved access to 207 new international destinations just by our ability to link our networks," said Dan Garton, executive vice president – marketing, American Airlines.
Garton added that the airline plans to expand its 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.
"As a key first step, our three airlines – along with Finnair and Royal Jordanian, our transatlantic partners in the oneworld global alliance – plan to apply today with the US 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," added Garton.
Meanwhile, rival carrier Virgin Atlantic Airways claims the deal will seriously damage the competitiveness of the lucrative trans-Atlantic route and increase fares.
"Make no mistake, if this monster monopoly is approved it will be third time unlucky for consumers," Virgin Atlantic President Richard Branson said. "It will still be bad for passengers, bad for competition, and bad for the U.K. and U.S. aviation industry."
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