British Airways and American Airlines Joint Venture to Start

The proposed agreement between British Airways Plc’s American Airlines for a joint venture on flights across the United states and Europe is set to kick start in the first week of November.

The two airlines have indicated that both of them will also align their frequent-flier programs allowing travelers to earn and use their miles on both airlines as soon as the venture starts operating. The companies then plan to coordinate their schedule next year before adding new destinations in the U.S. and Europe.


British Airways is Europe’s third-largest carrier, and American airlines based in Texas, won approval for the tie- up from antitrust regulators in July on their third try, after rejections in 1997 and 2001. The alliance will control almost 50 percent of U.S. flights at London’s Heathrow Airport.

In another development, Iberia Lineas Aereas, the Spanish airline is scheduled to complete its merger with London-based British Airways by the end of 2010,is also part of the joint venture and will contribute about 10 percent of the venture’s estimated $7 billion in annual revenue.