American Airlines and British Airways Plc. have won a tentative permission from U.S. transportation department. The Department said the proposed alliance would enhance competition in the airline industry "by creating competition with the existing Star Alliance and the Sky Team alliance which already have been granted immunity."

“The Department tentatively found that granting anti-trust immunity to the Oneworld Alliance would provide traveler’s with a variety of benefits, including lower fares on more routes, increased services, better schedules and reduced travel and connection times,” a statement from the Department of Transportation said.

American Airlines, the second-largest U.S. carrier and British Airways may plan to jointly price market and schedule international flights in their Oneworld alliance without fear of antitrust prosecution, the U.S. Transportation Department said yesterday.

American and British Airways must yield four pairs of takeoff and landing slots at Europe’s busiest airport, London’s Heathrow which it has put as a condition of approval. Europe’s third-biggest BA said customers will benefit from “more travel choices, convenient schedule and lower fares.”