Merger of British Airways and American Airlines gets go ahead

The union of British Airways (BA) and American Airlines (AA) moved one step closer to realization, after US regulators gave the deal a go ahead from their side.

The union will enable BA and AA to work together on services and pricing on profitable transatlantic courses, provided they abandon fair pairs of take-off and landing slots between Heathrow and the US. A planned union of the two airline companies was discarded in 2002 as regulators needed 16 pairs of slots to be forsaken.

The news comes as a relief for BA, which is reeling under the strikes planned by its cabin crew.

Rivals of the merger will have 45 days to explain their stance, after which the aspirant airlines will be given 15 days to counter the rival arguments. President of Virgin Atlantic, Sir Richard Branson has condemned the merger.

Madrid will, meanwhile, host discussions related to abandoning the Open Skies agreement that prevents European airlines from owning more than 25% stake in their American counterparts.

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