BA, Iberia, American Airlines deal may unravel

The BA, Iberia, American Airlines deal which has been pending for many months has hit another hurdle, as it seems that European regulators will seek that the companies give up some of their converted Europe to US routes, in return for allowing the deal to go ahead. This of course, comes a time when British Airways and Iberia are struggling with a decrease in “domestic” European traffic, and are looking to increase their transatlantic options with the three-way deal with American Airlines. This rumour of restrictions by the EU is causing shares in all three airlines to falter, especially for British Airways, as the German Deutsche Bank reduced its recommendation for the company, putting even more pressure on BA to drop the deal, and consider buying easyJet or German carrier Lufthansa.

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