Article Abstract:
American Airlines and British Airways (BA) plan a global alliance involving a code-sharing agreement that will join the two airlines' networks. BA gains access to the US market and American Airlines will be more able to sell flights for Europe. The alliance will run for an initial period of six years but a wider collaboration could be involved. Regulatory difficulties have to be tackled, but if BA is successful, the alliance could bring major benefits for the UK carrier.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
British Airways has performed well in terms of its share price since it was privatized, and the company plans an alliance with American Airways which would bring benefits to shareholders. There is a danger that the alliance may not be permitted by regulators on competition grounds. American Airlines ranks second among world airlines and faces fierce competition as does British Airways. The alliance would start as a marketing exercise but a stronger bond could develop.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
British Airways (BA) reported a rise in profit of 29% to 585 million pounds sterling for 1995 to 1996, but faces challenges in cutting costs. The company aims to reduce costs by an annual 1 billion pounds sterling by 2000. BA is also subject of rumors of an alliance with American Airlines. BA would be likely to have to cede some landing sites in London's Heathrow airport, England, if an alliance is set up, and this would hit the company's profits.
User Contributions:
Comment about this article or add new information about this topic: