Another Massive Airline Merger on the Horizon?

 An American Airlines Executive is apparently eyeing a merger with British Airways. In my thought attempting to compete harder against Lufthansa the world’s Largest Air Carrier at the moment

Thomas W. Horton, president of the AMR Corp the Holding company for American Airlines told The London Times Newspaper that he hoped to see a merger of his company with the International Airlines Group, which owns British Airways and Iberia.

There is just one issue right now: United States law prohibits foreign companies from owning more than 25 percent of an American airline. But Mr. Horton said he hoped that would change in his lifetime! I myself would really not bet on that!

American Airlines and British Airways already have a lot of cooperation in which the two companies share revenue and coordinate flight schedules.

According to AMR Corp’s President that this alliance agreement with British Airways I.A.G. is effectively a synthetic merger.

I remember in the 90’s of last Century American Airlines was Number One in Customer satisfaction.

The International Airlines Group is the far bigger company, with a market value of $7 billion compared with AMR Corps $1.36 billion.

Shares in AMR were down 3.3 percent, at $4.10, in late morning trading on Monday. Shares in the International Airlines Group were down 2.9 percent, at 230.5 Pence.