BA says transatlantic tie-up to start in October

29th September 2010, Comments 0 comments

British Airways said on Wednesday that its transatlantic alliance with Iberia of Spain and American Airlines aimed at cutting costs via greater coordination over routes will be launched next month.

BA said the trio had formally signed their 'oneworld' agreement following approval by US and European regulators earlier this year.

"The joint business will launch this October and provide customers with greater access to discounted fares, more convenient connections and better access to the airlines' global network," BA said in a statement.

BA, which is also close to a full merger with Iberia, said the transatlantic deal was worth a combined 7.0 billion dollars (5.1 billion euros) in annual revenues.

"The revenue share agreement allows the three airlines to cooperate commercially on flights between the European Union, Switzerland and Norway and the United States, Mexico and Canada.

"The benefits from the joint business will be shared between the airlines irrespective of which carrier takes the booking," BA added.

© 2010 AFP

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