British Airways and Iberia Airlines have set a date of 25 March to approve the creation of the world's third largest airline in terms of revenue. After strike threats and regulatory approval hurdles yet to come, how prepared will the airlines be for the next step – a joint venture with oneworld® partner American Airlines?

The combined airline will carry over 60 million passengers and cover more than 200 destinations around the world. Each entity will maintain its own brand and flights under the newly-registered International Airlines Group could begin by the end of 2010. The merger plans still need approval from shareholders and regulatory bodies. Both Iberia and British Airways are also looking to link schedules, fares and operations with oneworld partner American Airlines. The U.S. Department of Transportation has given the go-ahead for the joint venture on one side of the Atlantic but European regulators have yet to issue a ruling.

BA., AA and IB have offered concessions in the form of take-off and landing slots at airports such as London Heathrow to win over regulators. The proposal is undergoing a comment period which allows objections to the plan to be heard. The most fervent opposition has come from rival carrier Virgin Atlantic Airways whose chairman once called a potential link-up between British Airways and American Airlines a "monster monopoly." Adding Iberia to the mix won't make the likes of Virgin any happier. With one side of the Atlantic in place, it's now up to Europe to decide if a marketing tie-up consisting of a merged British Airways and Iberia along with American Airlines and other oneworld partners will yield all the benefits the parties claim it will.