BA looking at American Airlines tie-up
British Airways (BA) has said it is hopeful of confirming a tie-up with American Airlines (AA) within weeks. The UK airline is also in the middle of negotiations for a merger with Spanish airline Iberia.
easyJet expects high load factor for GB AirwaysFollowing an 88 per cent drop in profits between April and June this year, BA said it would be cutting three per cent of its flights this winter to reduce overheads.
BA and AA are currently working together in the One World alliance, which allows member airlines to share flight capacity and airport facilities.
According to the BBC however the latest talks between BA and AA are aimed at allowing the two airlines to work more closely to cut costs in areas like technology, ticketing and administration.
For a deal to materialise BA and AA the airlines would have to gain approval from US regulators, who in the past have prevented tie ups between the two. However BA hopes that a relaxation of regulations under the Open Skies agreement will increase the chances of gaining approval, reports the BBC.
Virgin Atlantic has said it would be against any tie-up between the two as it would create a "dominant mega-power" on transatlantic routes.
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