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BA seals alliance with American

LONDON, August 14 – British Airways says it has sealed an alliance with American Airlines that will allow the two carriers to fix fares, routes and schedules together.

The move will also include Spain\’s Iberia, which is merging with BA.

With aviation fuel prices at record levels and spending on air travel slowing, airlines are looking for ways to cut costs.

But the carriers will have to persuade the US that the deal does not break US rules on foreign ownership of airlines.

Under the business agreement, the three airlines will cooperate on flights between the US, Mexico and Canada and the EU, Switzerland and Norway.

The airline said it planned to file for anti-trust immunity from the US Department of Transportation and that it would also notify European regulators.

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