Holiday Rentals News - BA move sparks merger talk

BA move sparks merger talk

British Airways (BA) has begun discussions with two rivals which could lead to a merger involving the company, it has been announced.

While BA has only confirmed that it is "exploring opportunities for co-operation with American Airlines (AA) and Continental Airlines", others believe that the companies have bigger plans.

Speaking to the Telegraph, an unnamed source said: "This is all about BA and AA merging. They have tried to do it before and failed because of anti-trust issues. What we are now seeing is this plan resurrected."

The newspaper adds that it is "understood" that the discussions will centre on Continental joining the Oneworld Alliance, of which BA and AA are the dominant members.

BA's quest to seek stronger ties with its rivals follows the launch of the open skies deal.

Under the deal European airlines can operate flights to the USA from anywhere in the EU, not just the carrier's home country.

However, European operators also want the right to run domestic routes in the USA.

Regulators are set to hold discussions about expanding the agreement later this month.

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