BA-American Airlines alliance given provisional approval

Date: 15/2/2010

A transatlantic alliance between British Airways and American Airlines has been given provisional approval by US regulators.

Following the announcement, British Airways shares increased by four per cent today (February 15th).

It is thought the deal could be worth hundreds of millions of pounds to the airline.

The US Department of Transportation has stated that one condition of the alliance would be that the two airlines would have to surrender four pairs of take-off and landing slots at Heathrow.

The airlines still have to get approval from European regulators.
If plans go ahead, British Airways and American Airlines would be able to pool revenues and coordinate schedules.

However, Virgin Atlantic founder Sir Richard Branson has stated the "preliminary decision beggars belief" and accused the airlines of trying to create a "monster monopoly".

The tie-up would also include the airlines' commercial partners, such as Iberia, Finnair and Royal Jordanian.