Oneworld JV Partners Begin Talks With Clients About Merging Contracts - Business Travel News

Share this page

Text size: A A A

Oneworld JV Partners Begin Talks With Clients About Merging Contracts

September 10, 2010 - 09:15 AM ET

By Amon Cohen

The new transatlantic joint venture between American Airlines, British Airways and Iberia has started talking to existing clients about merging their separate contracts with the carriers, a BA spokesman told BTN on Friday. The joint venture is prioritizing rationalization of these arrangements before starting work on selling to new corporate customers. The spokesman also confirmed that the three carriers would start integrating their frequent-flyer plans next month and coordinate schedules starting with their summer 2011 programs.

The three airlines have been able to start work on integration since obtaining regulatory approval for their joint venture in the United States on July 20. “We are already speaking to corporates, asking them questions, and they are asking us questions, especially those which have different accounts with us,” the spokesman said. “They may have different policies to use different members of the joint venture on transatlantic, European short-haul and U.S. domestic routes.”

The spokesman added that the airlines also are working hard to align fare sub-classes so they can offer consistent agreements to clients. “At the moment, what one letter means in a United Kingdom contract could mean something different in a U.S. contract,” he said.

In addition to the joint venture, BA and Iberia are preparing to merge their organizations by year-end as International Airlines Group, although both brands will be retained. Earlier this week, BA chief executive Willie Walsh told reporters that IAG has prepared a list of 12 potential acquisition targets to add to the group. Walsh did not specify the targets, although he did tell the Australian Financial Review later in the week that a merger with Qantas—which was pursued without success in 2008— would still make sense.

This page is protected by Copyright laws. Do Not Copy. Purchase Reprint

Leave your comment:

Comments

blog comments powered by Disqus