American Airlines Partners With Another Budget Airline

Over the past quarter-century, U.S. airlines have increasingly relied on close partnerships with foreign airlines to enhance their international service. Many have formed joint ventures with other countries' flag carriers, providing full-service offerings throughout a customer's journey, regardless of which airline operates any given flight segment.

American Airlines (NASDAQ: AAL) has formed several such joint ventures over the past two decades. However, the company has become less selective when looking for international partners recently. In fact, it has signed partnership deals with two ultra-low-cost carriers in the past few months. Let's take a look at what this means for American Airlines going forward.

In 1996, American Airlines made its first attempt to form a transatlantic joint venture with British Airways. However, antitrust concerns related to the alliance's potential dominance of flights between the U.S. and London's Heathrow Airport repeatedly stymied the plan. In 1999, the two carriers began cooperating on a smaller scale (along with other airlines including Cathay Pacific and Qantas) through the oneworld global airline alliance.

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Source Fool.com