British Airways Announces "Joint Business" with American Airlines, Iberian Airlines

August 15, 1:45 AMBest Value Travel ExaminerDT Regula

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New Airline Alliance Surprises Many

British Airways announced today that it has finalized a deal with American Airlines and Iberian Airlines to combine operations in what it terms is a "joint business". The news was provided as a press release and individual Executive Club newsletter members even received a seemingly personalized email from Woody Harford, Senior Vice President, Commercial, Americas. (If that name sounds familiar, it may be because Woody once won a million dollars for sinking a 100-foot putt in a contest sponsored by Maximum Golf magazine back in 2000.) I felt special....

But what potentially worries me about this one is that the last thing the average traveler needs is less competition in the airline industry.

Already we're reeling from fuel surcharges, hikes in base rates, added fees, and radically stripped-down amenities. British Airways seems aware that this may be a problem,  and seeks to allay fears by noting "We plan to file for worldwide anti-trust immunity from the US Department of Transportation. The European Commission will also review the deal."

On the British Airways website, BA adds that the "anti-trust immunity" will also be requested for two other partners, Finnair and Royal Jordanian. While I wince and wonder how many airlines will be left that don't have "anti-trust immunity", this is nothing unusual - apparently other unions comprising 15 trans-atlantic airlines have already received this "anti-trust immunity" from the US Department of Transportation. No wonder British Airways is feeling just a bit left out.

BA, American, Iberian and the other involved airlines will continue to operate under their individual brands, and any existing ticketing should not be affected. BA claims that lower costs and more convenience will beneft customers, stockholders, and employees.

Since I often combine flights on major airlines for longer legs with cheaper connecting flights on smaller regional airlines, I've had quite a bit of experience in trying to get connection information if I'm trying to make a flight on an airline outside of any alliance. I'll agree that it's much easier when your connecting airline is a partner of some kind, but whether that will save money and hassle for the client or just for the involved airlines remains to be seen.