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Flag-carrying airlines British Airways (BA), Iberia and American Airlines (AA) have confirmed a joint business agreement which they claim will benefit passengers.

The partnership will see the airlines cooperate commercially on flights between the United States, Mexico and Canada, and also in the European Union, Switzerland and Norway.

This relationship will provide travellers with 'easy, seamless and convenient' connections to a wide range of global flight destinations, the operators claimed.

BA, AA and Iberia – all of which are oneworld alliance carriers – also said that the agreement will enable them to compete more effectively with other coalitions such as Skyteam and Star Alliance.

British Airways chief executive Willie Walsh said: 'This strategic relationship strengthens competition by providing consumers with easier journeys to more destinations with better aligned schedules and frequencies.'

Virgin Atlantic, one of BA's main competitors, was highly critical of the move, saying that it would create a 'monster monopoly' and lead to ticket prices being pushed up on transatlantic routes.

Airline president Richard Branson said: 'It will…be bad for passengers, bad for competition and bad for the UK and US aviation industry.'

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