American, BA seek smaller-scale alliance

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American, BA seek smaller-scale alliance
By Dan Reed, USA TODAY

American Airlines and British Airways, twice denied their controversial=20
request to combine trans-Atlantic operations, are seeking approval of a=20
more modest arrangement allowing them to sell some trans-Atlantic seats on=
=20
each other's planes.
The carriers have asked U.S. government antitrust regulators for=20
code-sharing rights on trans-Atlantic routes where they don't compete=20
head-to-head. That would allow American, for example, to sell seats on=20
British Airways planes flying from Denver to London. American also could=20
sell under its own brand seats on BA flights to about 100 destinations=20
beyond London in Europe, Africa and the Middle East. And BA would get the=20
right to sell tickets under its name on American's connecting flights to=20
about 190 destinations in the USA, Mexico, Latin America and the Caribbean.

The American-BA arrangement would offer fliers competitive alternatives to=
=20
alliances between other U.S. and European carriers and convenient=20
connections while preserving competition on routes where the airlines=20
overlap, the Air Travelers Association, a consumer interest group, said=20
Tuesday. American and British Airways tried to get antitrust immunity to=20
combine trans-Atlantic operations in 1996 and again in 2000. Competitors=20
and some consumer advocates complained that the plan would have given=20
American and BA near-monopoly control over routes from the USA to London's=
=20
Heathrow Airport, the most lucrative between the USA and Europe. Both of=20
those efforts died when regulators set conditions that BA and American said=
=20
were too costly and unfair.

With the immunity, the airlines could have shared revenue, costs and=20
sensitive marketing data and jointly set schedules and allocated capacity=20
on their shared routes. With code-sharing =97 so-called because flights=
 using=20
one airline's aircraft are sold under the two-letter computer code of the=20
other =97 they can't do any of those things. Rather, they act as marketing=
=20
representatives for each other on routes they don't serve themselves. "We=20
want antitrust immunity but we believe that at this time, looking at the=20
regulatory environment, that may not be possible," said American=20
spokeswoman Sonja Whitemon.

Who has paired up  ...  Major code-sharing partnerships between U.S. and=20
European airlines:

United/Lufthansa
United/BMI (formerly British Midland)
United/SAS
Delta/Air France
Delta/Alitalia
Delta/CSA Czech
Northwest/KLM


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