US Airways' president and chief executive officer, Rakesh Gangwal, is hinting strongly of renewed interest in British Airways as an attractive prospective alliance partner.

The US airline has been free to pursue its expansion plans since signing an agreement with its pilots' union last year. According to Gangwal, efforts to find an international partner are just beginning as part of those plans. 'Two years ago we would not have been able to strike an agreement with a large international carrier that was mutually beneficial,' says Gangwal. 'It would have been an uneven balance. No-one knew then whether we would even survive. But now, with everything improved and our very large east coast market presence, we have become a coveted partner. That allows us to negotiate a fair bargain, which is what we are looking for.'

Gangwal believes that such a bargain might be possible with the British flag carrier, despite the earlier acrimonious split between the two companies. Gangwal thinks this would not stand in the way of a new relationship. 'I would like to believe there is no conflict out there now,' he says. 'What we would like to see happen is a fair bargain being struck with BA. We would be very willing to join hands and go forward in a long-term relationship with BA. But it's imperative that it is a fair bargain.'

How such a plan would be viewed by the regulatory authorities remains to be seen. US Airways clearly does not wish to let go of its planned domestic alliance with American Airlines, which has been trying to forge an alliance with BA for more than two years. Gangwal describes the link with American as 'a match made in heaven.'

Source: Airline Business