BA / American-Tie Up?

British Airways (BA) has announced it is hoping to agree a “tie-up” with its US oneworld Alliance partner American Airlines (AA).
The news follows an earlier announcement that BA and the Spanish airline Iberia were engaged in detailed talks about a possible merger.
The BA Press Office issued a statement confirming that: “We continue to talk to American Airlines and Iberia about increased co-operation and look forward to providing an update as soon as we can.”
Any deal between BA and AA would be subject to regulatory scrutiny.
BA saw its profits drop by 88% between April and June and Chief Executive Willie Walsh said the industry faced “its worst ever trading period”.
He added: “The combination of unprecedented oil prices, economic slowdown and weaker consumer confidence has led to substantially lower first quarter profits.”
The company also said it would cut 3% of flights this winter to reduce overheads, but denied this would compromise its network.
BA and AA had detailed talks about a possible tie-up more than a decade ago, but they were abandoned after the two carriers failed to gain immunity from US competition laws. Today it would seem that relaxations in regulations under the Open Skies agreement may make this more likely.