EU approved British Airways's merger with Spain's Iberia and AMR Alliance

British Airways won European Union antitrust approval for its proposed trans-Atlantic alliance with American Airlines and its planned merger with Iberia Líneas Aéreas de España. BA's merger with Iberia will create Europe's third-largest airline by revenue. (Business Week)

The alliance pact between the airlines allows them to share revenue, combine their marketing and flight planning, and collaborate on pricing. The European Union's clearance means they are immune from usual antitrust rules that forbid collusion between companies on prices and markets so as to allow consumers to benefit from lower prices. (WSJ)

Virgin Atlantic has been vocal in its opposition to the deal between BA and American Airlines. Its boss, Sir Richard Branson, said consumers would lose out. "We have fought this monster monopoly for the past 13 years and are still resolute in our belief that this decision is shameful and consumers will suffer greatly as a result of this deal," he said. (BBC News)