New BA boss signals closer ties with American

Saturday, 11 Oct, 2005 0

Oneworld alliance partners British Airways and American Airlines are to seek closer ties – maybe even a merger.

Regulatory hurdles have in the past prevented attempts by the two carriers to forge closer links but new BA chief executive Willie Walsh has signalled his intention to develop the relationship.

Walsh – giving his first interviews since taking over from Rod Eddington – was widely quoted in the weekend press as saying he wants greater co-operation with American.

Some interpreted this as paving the way for a full blown merger but Walsh, quoted in The Observer, said: “That is a completely different agenda. The first stage would be to move to a closer relationship.”

Fresh discussions between the US and EU over so-called open skies across the Atlantic are being seen as creating an opportunity for greater commercial co-operation between the two airlines over the next 18 months.

BA and American have been twice thwarted in attempts to merge due to regulatory barriers.

Report by Phil Davies 



 

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Phil Davies



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