U.S. Law Preventing Such Happenings
A big merger could be in the making if the president of American Airlines’ parent company gets his wish.
The president, Thomas W. Horton, is quoted by The Times of London saying he would like to merge AMR Corporation, which owns American Airline (AA), with International Airlines Group, which owns British Airways (BA) and Iberia.
There is only one issue that stands in the way at the moment. United States law does not allow foreign entities to own over 25 percent of an American airline.
Horton said he hopes that changes during “his lifetime.”
International Airlines Group currently outweighs AMR Corporation in market value $7 billion to $1.36.
Source: New York Times