American Airline, British Airways, and Iberia

The Joint Business Agreement will improve global connectivity for customers and communities world-wide

Overview

American, British Airways and Iberia plan to form a Joint Business Agreement (JBA) that would allow them to improve customer choices with enhanced and improved service to oneworld’s 663 destinations, in 134 countries, with 8,951 daily departures. As a key first step, the three carriers, along with fellow oneworld alliance members Finnair and Royal Jordanian, have applied for worldwide antitrust immunity to expand their cooperation and more tightly integrate their services to deliver more benefits to customers globally than is possible today.

Airline Statistics

	American Airlines	British Airways	Iberia
Employees (full-time equivalents)	85,7001	41,700	22,514
Headquarters	Fort Worth, TX	London, UK	Madrid, Spain
Destinations/Countries	248 destinations; 52 countries	154 destinations; 75 countries	109 destinations; 44 countries
Daily Departures	4,100	760	1,000
Primary Hub/Focus Cities	Dallas/Fort Worth, Chicago, Miami	London	Madrid-Barajas
Fleet	More than 1,000	245	198
2007 Operating Revenue	$22.9 Billion	£8,753 Million	€ 5.5 Billion
2007 Pre-tax Profit (Loss)	$504 Million**	£883 Million	€ 446 Million
2007 Passengers	119 Million	33 Million	32 Million
Frequent Flyer Program	AAdvantage	Executive Club	Iberia Plus
Lounges	44	70	16

NOTE: * AA figures include America Eagle; ** AA paid no taxes in 2007. Source – oneworld at a glance statistics (as of May 16, 2008), except for BA which is as of March 31, 2008.

More network connections from American, British Airways and Iberia

	New Int’l airports/destinations	New U.S. airports/destinations	Total New Destinations
AA’s customers gain	207	-	207
BA’s customers gain	102	135	237
IB’s customers gain	107	147	254

• AA, BA, and IB have service to 443 destinations in 106 countries, with a combined total of 6,277 daily departures.

More network choices from oneworld partners

• AA, BA, IB, AY, and RJ, have service to 493 destinations, in 121 countries with a combined total of 6,558 daily departures.
• By immunizing and combining networks of all five participating airlines, up to 34,216 new city pairs will be created. That could expand to 38,295 new city pairs with full liberalization of the existing bilateral agreements.
• Immunizing and combining networks of the participating airlines will create new choices for consumers

AA unique cities in North and South America	BA, IB, Finnair & Royal Jordanian unique cities in Europe, Africa and the Middle East			New City Pairs	Allowed under current ASAs
185	X	207	=	38,295 immunized	34,216 immunized

Expanded options via code-sharing

The new transatlantic codesharing will be created as well. Subject to any remaining regulatory restrictions, the airlines will file any and all necessary applications to permit blanket codesharing on markets both behind and beyond each other’s networks.

• AA will place its code on potentially 143 new destinations (223% increase);
• BA will place its code on potentially 122 new destinations (106% increase);
• IB will place its code on potentially 195 new destinations (331% increase)

AA as the marketing carrier for unique cities in North and South America	BA, IB, Finnair, & Royal Jordanian are the marketing carriers for unique cities in Europe, Africa and Middle East			New City Pairs	Allowed under current ASAs
104	X	143	=	14,872 codeshare	12,524 codeshare