American Airlines president Tom Horton believes that restrictions on the foreign ownership of US carriers would be relaxed before he retires, giving hopes of a full merger with British Airways and Iberia (The Australian, 01-Aug-2011). The US restricts foreign ownership in domestic carriers to 25%, although Washington is under pressure from the EU to relax these rules. Mr Horton stated: "This alliance agreement with BA and IAG is effectively a synthetic merger. Over time - I think in my working lifetime - foreign ownership rules in the US will become more flexible. This alliance could form the basis of a cross-border merger between our airlines."
1-Aug-2011 3:32 PM