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By Lee Wild

Date: Thursday 14 Aug 2008

LONDON (ShareCast) - British Airways, American Airlines and Spanish carrier Iberia have agreed to form a transatlantic joint venture, confirming press speculation that an announcement was imminent.

The trio signed a joint business agreement on flights between North America and Europe and plan to expand their global cooperation, they said this afternoon.

Today they will file for worldwide anti-trust immunity from the US Department of Transportation and will notify regulatory authorities in the European Union.

All three will operate as separate legal entities, but cooperate commercially on flights between the US, Mexico and Canada, and the EU, Switzerland and Norway.

Each carrier will benefit from lower costs and attract new customers, they said, helping offset pressure on fares from soaring fuel costs.

“We are applying for EU US anti-trust immunity in a changed regulatory world where London Heathrow is open to any US or EU airline that wants to fly to the United States and where rival alliances have immunity,” said BA boss Willie Walsh.

BA said late last month that it had started merger talks with Iberia in which it already has a 13.5% stake, but expected talks to last several months.

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