British Air, American Disclose Alliance Plans

British Airways and AMR Corp.’s American Airlines unveiled plans for a new alliance, saying competition over transatlantic flights has increased since antitrust regulators blocked a pact three years ago.

British Airways and American said that they will file for U.S. antitrust immunity next week, and that they will seek competition clearance from the European Union and Britain.

American, the world’s largest airline, and British Airways, Europe’s largest, said they will step up cooperation in their Oneworld Alliance and set up nine transatlantic routes as a joint venture with shared profit.

The biggest rival to Oneworld is the Star Alliance led by Lufthansa and UAL Corp.’s United Airlines. Delta Air Lines Inc. and Air France head another transatlantic alliance, and Northwest Airlines works with KLM of Holland.

AMR and British Air executives said those rivals enjoy advantages that British Airways and American are barred from, including code sharing, joint frequent flier programs and coordinated schedules and marketing.

British Airways’ American depositary receipts fell 43 cents to $48.50, and AMR fell 53 cents to $34.84, both on the NYSE.