Third time's the charm

14 August 2008 By Aliza Rosenbaum

Regulators have twice turned down proposals by the two carriers to work together. But in the world of Open Skies and expensive fuel, its hard to see the third approach with Spain’s Iberia thrown in being rejected. The alliance would only be in third place on the Atlantic.

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On August 14, British Airways, American Airlines and Iberia said that they had signed a joint business agreement for flights between North America and Europe. The three airlines said that they planned to file for worldwide antitrust immunity from US and EU authorities.

The socalled Open Skies accord came into force in March 2008 and largely removes the restrictions which governed airline routes between Europe and the US.

In approving SkyTeam's immunity request in May 2008, the US Department of Transportation (DOT) said the proposed alliance is in the public interest because it features a proposed new and highly integrated joint venture that will likely produce efficiencies and provide consumers with additional price and service options. […] The USEU agreement provides that transatlantic markets remain open to other competitors because US and European airlines are now able to serve any route between the United States and Europe.

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