AMR Corp. President Thomas W. Horton said he would like to see his company merge with British Airways' owner, International Airlines Group. American Airlines and British Airways already coordinate flight schedules and share revenue through an alliance. Despite legal hurdles, Horton said a formal merger is the next logical step. "This alliance agreement with BA and IAG is effectively a synthetic merger," he said. "Over time -- I think in my working lifetime -- foreign ownership rules in the U.S. will become more flexible. This alliance could form the basis of a cross-border merger between our airlines."

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