• Chicago Tribune , Friday, August 15, 2008 10:15 AM

American Airlines, British Airways and Iberia are forming a virtual merger to closely coordinate flying between North America and Europe. How to deal with consolidation will pose a thorny policy question for the next U.S. president, who likely will have to approve this venture, as well as one proposed by United Airlines, while determining the role U.S. carriers will play in emerging global networks.

Carriers that belong to the three major global marketing alliances increasingly are seeking closer ties that will allow them to form worldwide networks while sidestepping rules that limit foreign carriers to small ownership stakes in U.S. airlines.

"All we are trying to do with British Airways and Iberia is to be able to compete on a level playing field with SkyTeam and the Star Alliance," says Gerard Arpey, chairman and CEO of American Airlines. "We think the regulators will see it way."

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