British Airways in new alliance bid

British Airways and American Airlines, the world's largest airline, have announced a new alliance, their second attempt to join…

British Airways and American Airlines, the world's largest airline, have announced a new alliance, their second attempt to join forces across the Atlantic since the first was blocked three years ago.

BA, the world's largest international airline, said in a statement the two airlines had applied for US antitrust immunity and competition clearance in the UK and EU for the deal, which envisages profit sharing on nine transatlantic routes.

The routes are between London's Heathrow airport and Boston, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Raleigh/Durham, St Louis and San Francisco. Heathrow is the world's busiest international airport and BA's main hub.

BA chief executive Mr Rod Eddington and American Airlines chief Mr Don Carty suggested in their statement that things had changed since their last engagement collapsed, saying they wanted the same sort of alliance that is now already enjoyed by rivals.

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European and US regulators blocked the two airlines' last attempt to form a close alliance - and are likely to face calls by other airlines to reject it again, unless they are given access to Heathrow.

Competing airlines want the Atlantic market liberalised under an "open skies" aviation trade pact between the US and British governments.

BA said in its July update that passenger traffic fell 9.7 per cent from last year’s level. the year-ago level. Load factor - a measure of how successful an airline is at filling the number of seats on offer - fell 0.6 points to 77.4 per cent. Cargo fell 15.5 per cent.