Airline Deal Faces Unexpected Obstacle
British regulators on Friday threw a new hurdle in front of American Airlines’ plan to link with British Airways, deciding the alliance is a merger and warrants further scrutiny.
Now, the airlines must try to persuade fair trade officials that their alliance won’t stifle competition.
“Even if they find it is a merger, the big aspect is if it’s anticompetitive - and it isn’t,” said American Airlines spokeswoman Lizann Peppard in London.
Executives from the two airlines contend they will provide better service to passengers and the deal will spark increased competition, leading to lower fares.