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TRANSATLANTIC JOINT BUSINESS SIGNED

British Airways has signed an agreement to start a transatlantic joint business with American Airlines and Iberia which is worth a combined US$7 billion in annual revenues.

The revenue share agreement allows the three airlines to cooperate commercially on flights between the European Union, Switzerland and Norway and the United States, Mexico and Canada. The benefits from the joint business will be shared between the airlines irrespective of which carrier takes the booking. It has been approved by the regulatory authorities of the European Union and United States.

The joint business would be launched this October and provide customers with greater access to discounted fares, more convenient connections and better access to the airlines’ global network.

It will also enable the airlines’ alliance oneworld to compete on an equal footing with the other main global alliances that have had regulatory approval to operate transatlantic joint businesses for several years.

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