British Airways, American Airlines and Spanish carrier Iberia have signed off on a long-awaited strategic alliance that will see them cooperate on flights between Europe and North America.
"The joint business will launch this October," British Airways said in a statement.
"It will ... enable the airlines' alliance Oneworld to compete on an equal footing with the other main global alliances that have had regulatory approval to operate trans-atlantic joint businesses for several years."
BA agreed a £5BN merger with Iberia in April, creating the world's third biggest airline and bringing it a step closer to a tie-up with AMR Corp's American Airlines.
The three airlines won approval from the US government and the European Union to work together in July.