British Airways signs joint venture with American Airlines and Iberia

Premier class travelers who frequently fly between the U.S. and Europe may soon find some changes to their travel itineraries that could make their trips a little bit easier.

British Airways recently announced that it has signed a transatlantic agreement with American Airlines and Iberia in order to cooperate on flights between Europe and North America, according to MarketWatch.

Combined, the airlines will generate an estimated $7 billion in annual revenues for the airline.

The joint business will launch in October, according to the airline. British Airways said that this deal will allow customers to have better access to lower airfares and more convenient connections.

This announcement comes shortly after British Airways started planning a merger with Iberia, which currently still needs to be approved by shareholders.

With the agreement, the OneWorld Alliance, of which American, Iberia and BA are members, will then be on equal footing with other airline alliances, including Star Alliance and SkyTeam.

Apart from potentially lower fares due to increased competition with other airline alliances, premier class passengers can still look forward to enjoying the same luxuries that each airline offered before the revenue sharing agreement.


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