US officials give BA the go ahead to fly alongside AA
BRITISH AIRWAYS’ (BA) shares took off yesterday on news that US officials have given its transatlantic partnership with American Airlines (AA) the green light.
A nod from the US Department of Transport (DOT) was the last hurdle for the airline after receiving approval from European regulators last week.
The approval means the two airlines, along with Spanish merger partner Iberia, can operate a joint business on transatlantic flights.
News of the approval sent BA’s shares up almost five per cent by the close to 210.1p as the airline said it plans to launch the joint venture by the autumn.
The tie up will allow the airlines to pool revenues, target business customers and collude on ticket prices, however they will have to give up four takeoff slots at Heathrow airport.
Last week BA received approval from the European Commission to allow its merger with Iberia to go through.