However, as was the case with the Air France-KLM merger in Europe, the airlines' brands would remain separate.

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The two big mergers in Europe -- between Air France and KLM, and British Airways and Iberia -- had been accomplished through the creation of holding companies, allowing the respective airlines to operate independently and remain nationally-owned, he said.

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The travel chaos rippled across Europe as many airlines, including Air France, Alitalia, Lufthansa, Iberia and Aer Lingus canceled flights to Heathrow.

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Second, they will be able to fly from anywhere in Europe to the United States so that Air France, for instance, could fly to Washington from London, and British Airways could compete with Lufthansa on the Frankfurt-New York route.

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But the service, similar to what both Lufthansa and Air France have been doing for first-class customers at their biggest hubs in Europe, stands to rev up competition between airlines for top customers in the U.S. As much as 75% of airline revenue typically comes from 25% of passengers.

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