Flag carriers sign joint business agreement

British Airways, American Airlines and Iberia have announced the signing of a joint business agreement on flights between North America and Europe.

The airlines claimed that the development will benefit customers by providing better connections and improved flight schedules to global destinations.

Under the agreement, the airlines will cooperate commercially on flights between the USA, Mexico and Canada and also within Europe and Scandinavia.

This agreement is "a significant step towards strengthening customer choice", the flag carriers claimed, with customers able to travel more easily on a combined route network of 443 destinations in 106 countries.

British Airways chief executive Willie Walsh said: "This strategic relationship strengthens competition by providing consumers with easier journeys to more destinations with better aligned schedules and frequencies."

The agreement has not gone down well with some of the airlines' competitors, however, with Virgin Atlantic saying it would create a "monster monopoly" that would drive up ticket prices and reduce competition on transatlantic flights.

Airline president Richard Branson said: "It will…be bad for passengers, bad for competition and bad for the UK and US aviation industry."

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