Continental Reportedly in Alliance Talks with American, British Airways

As the pending Northwest-Delta merger threatens to marginalize Continental’s standing in the SkyTeam alliance, Continental is talking to American and British Airways about joining Oneworld.

In a brief statement, British Airways on April 30 said it was “exploring opportunities for co-operation with American Airlines and Continental Airlines. Further details will be announced when appropriate.”

On April 27, Continental announced that it would no longer seek a merger with a U.S. carrier (it had reportedly been in talks with United), and that instead Continental would “continue to review potential alliances and our membership in SkyTeam.”

“We are considering alternatives to SkyTeam as we carefully evaluate which major global alliance will be best for Continental over the long term,” said Continental.

A British Airways acquisition of Continental is not yet an option, as current U.S. regulations forbid majority foreign ownership of U.S. airlines. But the next round of U.S.-European Union open-skies negotiations in May could lay the groundwork for transatlantic mergers.