American Talking 'Cooperation' With British and Continental

[Matt Molnar]

The Dallas Morning News:

American Airlines talking to British Airways, Continental about partnership (http://www.dallasnews.com/sharedcontent/dws/bus/stories/050108dnbusaabacontinental.b53568de.html)

11:39 AM CDT on Wednesday, April 30, 2008

By TERRY MAXON / The Dallas Morning News
[email protected]

American Airlines Inc. is talking about a partnership with Continental Airlines Inc. and British Airways PLC, American and British Airways said Wednesday.

The talks don’t involve any plans for a merger, but possible ties on frequent-flier programs, code-sharing and possibly a renewed attempt to get antitrust immunity for American’s and British Airways’ existing trans-Atlantic alliance. [Full Article (http://www.dallasnews.com/sharedcontent/dws/bus/stories/050108dnbusaabacontinental.b53568de.html)]

[Matt Molnar]

Virgin Atlantic's Richard Branson blasts proposed airline partnership (http://www.dallasnews.com/sharedcontent/dws/bus/industries/airlines/stories/050108dnbusaababranson.b5bc095e.html)

03:40 PM CDT on Wednesday, April 30, 2008

By TERRY MAXON / The Dallas Morning News
[email protected]

One of the strongest opponents to British Airways-American Airlines alliance served notice Wednesday that he’ll oppose any renewed efforts to give that partnership immunity from antitrust laws.

Virgin Atlantic Airways president Sir Richard Branson said his company will “fight tooth and nail to ensure that regulators say no way BA/AA/Continental.”

...

"When BA and AA first tried to get together nearly ten years ago, the regulators ruled it was against the consumer interest. Nothing has changed,” Mr. Branson said in a statement.

“A link-up between BA and AA is still anti-competitive and now they have the cheek of trying to add Continental to the mix, too,” he said. “This triple whammy would reduce effective competition across the Atlantic, and the regulators should make it absolutely clear that it would have no chance of getting off the starting grid.” [Full Article (http://www.dallasnews.com/sharedcontent/dws/bus/industries/airlines/stories/050108dnbusaababranson.b5bc095e.html)]

[T-Bird76]

I'd love to see an AA/CO partnership in terms of FF programs and codesharing. Both are quality airlines that provide good service. It would also give both airlines a HUGE leg up on competing with Delta here in the NY area.

[Matt Molnar]

This is the next best thing to a BA + AA merger, but I don't know how US or EU antitrust regulators would allow it. The three airlines combined accounted for 60% of US-London capacity in 2006.