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EC approves British Airways alliance

The ongoing three-way merger between British Airways, American Airlines and Iberia has been given the go-ahead by the European Commission although British Airways has been forced to give up a number of lucrative landing slots. This is a deal which has been ongoing for well over 12 months now but finally it looks as though the three companies can now look to the future and officially merge their operations to create one of the most powerful airlines in the world.

When you consider that the airline industry has been through its most difficult period in living history and British Airways is still struggling to contain damaging strike action, the merger of these three operations could be a godsend for the stricken UK carrier. Many believe that this is the only way forward for the airline industry which has become fragmented over the years, although mergers and acquisitions will allow costs to be consolidated and efficiencies to be introduced. The clearance by the EC is the final hurdle for the proposed venture although it is unclear at this moment in time when we will see the operations pull together under one umbrella.

Regulatory clearance in the airline industry has been very difficult to achieve with concerns that a small number of large airlines would effectively dictate the worldwide market. However, finally there is good news for British Airways and Willie Walsh!

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