Transcontinental airline deal

British Airways has signed a
transatlantic tie-up with American Airlines and Iberia that, it says, is worth
a combined $7 billion a year.

The deal allows the airlines to
share passengers and costs on flights between the European Union, Switzerland
and Norway and the US, Canada and Mexico.

BA said the joint business would
launch next month and give customers “greater access to discounted
fares”.

A tie-up between the airlines
received regulatory approval this summer.

The tie-up had been vigorously
opposed by rival Virgin Atlantic, which said it would create a “monster
monopoly”.

BA has already signed a merger
agreement with Spain’s Iberia to form a new company called International
Airlines Group.

The BA and Iberia
brands will, however, continue to operate as normal.

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