AA, BA, Iberia Sign Cooperation Deal To Cut Costs, Compete Better

London, UK (AHN) - American Airlines, British Airways and Iberia Airlines signed a cooperation agreement on transatlantic flights on Thursday in a bid to cut fuel costs and better compete with other global airline alliances.

The agreement will see the world's largest airline in terms of passenger fleet and passengers transported and the national carriers of the United Kingdom and Spain offering more destinations and frequent flyer benefits as well as better connections and schedules.

Countries covered by the deal are Canada, European Union, Norway, Mexico, Switzerland and the U.S. The three airlines combined serve 443 destinations in 106 countries.

The airlines will file for an anti-trust immunity with the U.S. Department of Transportation and notify European Union authorities of the agreement on Thursday to effect it.

BA chief executive Willie Walsh said the alliance will benefit travelers and will not reduce competition as claimed by Sir Richard Branson of rival airline Virgin Atlantic.