BA, AA and Iberia name tie-up routes

British Airways, American Airlines, and Spain’s Iberia unveiled four new routes and promised passengers lower prices and flight flexibility as they launched an $8bn (£5bn) transatlantic joint business yesterday.

The trio are strengthening their existing oneworld alliance ties — but stopping short of a full financial merger because of strict US laws that bar foreign ownership in the airline industry — as many airlines struggle to stay airborne in the wake of the global financial crisis.

However, British Airways chief executive Willie Walsh said of the deal: “You are going to witness a new era of competition. Customers flying transatlantic have never had so much choice.”

The four new routes are: New York to Budapest, Chicago to Helsinki, London to San Diego and Madrid to Los Angeles. The new venture’s route network will cover 433 destinations in 105 countries.