American Airlines Inc., British Airways plc and Spain's Iberia Lineas Aereas de Espana SA are close to applying for antitrust immunity to form a joint venture that would combine their trans-Atlantic routes, the Financial Times reports.  But BA, while acknowledging long-running talks, says no application is imminent. American Airlines and BA have tried to form a joint venture in the past, but were deterred by antitrust authorities -- something Virgin Atlantic Ltd. would like to see happen again as it says the deal would form a "dominant megapower on trans-Atlantic air routes."

The FT says BA and American are expected to tell regulators that the recent wave of mergers and new alliances in the industry has strengthened their biggest trans-Atlantic rivals.

BA recently agreed to buy French executive airline L'Avion for £54 million ($108 million) to secure routes between Paris and New York and expand its new OpenSkies unit. - Baz Hiralal

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