British Airways 'close' to American Airlines tie-up

04-08-2008

British Airways 'close' to American Airlines tie-up
British Airways is making a third attempt to merge with its partner, American Airlines.

The airline has made two attempts at the deal in the past but has been turned back by US regulators due to strict competition laws.

Willie Walsh, British Airway's chief executive, said "We want to move on this as soon as possible," with a deal expected to be completed within a fortnight.

The two airlines want to run their transatlantic operations as a single company but applications to the regulator where turned down in 1997 and again in 2002.

American Airlines and British Airways already share some costs including flight and airport capacity. However, this deal could see them forge a closer relationship and cut costs in other areas.

The talks are taking place alongside negotiations for British Airways to merge with Spanish carrier Iberia, which was announced last week.

British Airways recently admitted an 88 per cent fall in profits as fuel prices made a serious dent in the airline's margins.

The company is now seeking to cut costs by making efficiencies throughout its business.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure