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The airlines, along with Iberia, a prospective partner of British Airways, said on Thursday that they planned to apply for antitrust approval from the Transportation Department to form a marketing alliance to link their global flight networks.

American and British Airways tried twice before to bring about such an arrangement, only to face stiff requirements from regulators. But the aviation landscape has changed significantly since they first proposed the deal in 1996. Then, flights between the United States and Heathrow Airport near London were strictly controlled, and deals between big airlines were routinely viewed as anticompetitive.

source: New York Times

Sir Richard Branson’s Virgin Atlantic is set to launch a major advertising campaign to challenge British Airways’ (BA) plans for a tie-up with American Airlines (AA). Branson claims that the proposed deal would damage transatlantic competition.

BA is expected to make an application in the US this week to enact the joint venture with AA. The pact between the two airlines would mean they would have dominant shares of transatlantic flights from Heathrow on six routes including New York JFK, Chicago and Los Angeles.

source: marketingweek.co.uk

British Airways will make a third attempt to seal an alliance with its US partner American Airlines within weeks.

Willie Walsh, BA’s chief executive, said he expected final preparations for the deal to be complete within a fortnight, with an application to US regulators to follow shortly afterwards. “‘We want to move on this as soon as possible’,” he said.

BA, which revealed sharply reduced profits last week, has tried to consummate its marriage with American Airlines for more than a decade. It first sought the permission of US regulators in 1997, then again in 2002.

source: Times Online

If the proposed merger between British Airways and Iberia is given the go-ahead, it will create the world’s third largest revenue carrier and give the two carriers a combined 13.5% share of the transatlantic market based on capacity.

The oneworld alliance partners announced on 29 July that they are in talks with a view to carrying out an all-share merger, which would see both airlines retaining their brands as part of a combined group.

source: flightglobal.com

The national carrier said increasingly tough economic conditions – with oil prices nudging £150 a barrel – made price hikes of up to four per cent “‘absolutely inevitable'”.

The warning came as both BA and Ryanair announced unprecedented cutbacks in their flight schedules to save on fuel costs.

BA has scrapped hundreds of flights over the summer, merging half empty flights to popular destinations to reduce its consumption of fuel.

source: telegraph.co.uk

Passengers who flew across the Atlantic between August 2004 and March 2006 with British Airways (BA) and Virgin Atlantic are entitled to a refund as part of a £100 million settlement pending in California.

The deal was struck by American lawyers in US courts but the lion’s share – £73.5million – has been reserved for British passengers.

That equates to a refund of between £4 and £20 for each return ticket and up to £10 for a one-way ticket. Frequent flyers and corporate customers could pick up hundreds of pounds.

The refund applies not only to transatlantic flights but to any long haul journey operated by the airline between the specified period.

source: telegraph.co.uk

Faced with growing financial problems, U.S. air carriers could start seeking foreign investments and pushing for a relaxation of U.S. airline-ownership laws, British Airways PLC Chairman Martin Broughton said in an interview.BA, which flies more passengers to and from the U.S. than any other overseas airline, doesn’t envision being able to make a major investment in a U.S. carrier anytime soon, said Mr. Broughton.

source: The World Street Journal

Undeterred by a raft of airline bankruptcies caused by the record fuel price, British Airways brought the world’s newest airline into being yesterday.

The inaugural service, which took off from Paris Orly destined for New York, launched just a day after Penelope Butcher of Morgan Stanley warned that the aviation industry was flying into a period that, because of soaring oil price and rapidly slowing economies, would be worse than the fraught years after 9/11, when several major carriers went bust, as well as the 1992-93 recession.

source: The Independent

British Airways boss Willie Walsh has confirmed the airline will be forced to raise fares and cut capacity due to rising oil prices.

Walsh also said the era of the low-cost fare was over and predicted a wave of airline failures in the coming months.

However, he said BA was in good position to ride out the storm and would be investing in premium travel to help achieve that.

“‘Prices will have to go up given the way the oil prices are,'” said Walsh.

“‘I don’t think the industry can absorb these significant increases. This is just the start of a correction. Those who are strong will be able to adapt but those who are weak are going to go out of business.’”

When asked if the era of the low fare was over, he replied: “‘My view is yes.’”

source: TTGlive

British Airways will raise fares, slash flights and consider cutting its order of new aeroplanes as the flag carrier prepares to follow a year of record profits with its toughest 12 months since 2001.

BA staff secured a £35m windfall today after the airline hit its 10% profit margin target for 2008, but analysts warned that the coming years could be bonus-free as a high oil price and a weak global economy pose a fundamental threat to the industry.

source: Guardian.co.uk