BA 'exploring' link-up with US Airlines

British Airways today sparked the prospect of an industry tie-up after saying it was “exploring opportunities” with two US rival carriers.

The airline, knocked last month by the disastrous opening of Heathrow Terminal 5, said it was looking at working with American Airlines and Continental Airlines.

In a brief statement, BA said: “BA is exploring opportunities for cooperation with American Airlines and Continental Airlines.

“Further details will be announced when appropriate.”

It would not give any further details on the nature of the talks.

BA already works with American Airlines (AA) under the One World arrangement, which allows member airlines to extend their route network and share airport facilities.

It has also previously tried to merge with the airline, but the attempts were rejected by competition authorities.

Today’s announcement follows the launch of the “Open Skies” arrangement in March, easing restrictions on air travel between the EU and the US.

It allowed any European airline to fly to the US from anywhere in the EU – not just from its home nation as was previously the case. Conversely, any US airline is able to launch flights to the EU.