BA-AA merger may be back on the agenda
LONDON – British Airways may be re-visiting plans to merge with America Airlines.
A statement from BA last night said: “British Airways is exploring opportunities for co-operation with American Airlines and Continental Airlines.”
Although BA refused to give details of the discussions it is understood they revolve around Continental joining the oneworld Alliance, where BA and AA are the dominant members.
Sources told Telegraph Online that while it would be difficult to take discussions beyond a partnership arrangement in the current regulatory environment, BA and AA have at least one eye on discussions due to take place later this month about further liberalisation of the transatlantic market.
A source said, “This is all about BA and AA merging. They have tried to do it before and failed because of anti-trust issues. What we are now seeing is this plan resurrected.”
Regulators from both sides of the Atlantic are due to meet in Slovenia later this month to hold discussions about the second stage of the transatlantic Open Skies agreement.
The talks will centre on freeing up ownership rules of US airlines and allowing European carriers to operate domestic routes in the US. The regulators have until 2010 to reach an agreement.
Ian Jarrett
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