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BA and AA end alliance?
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July 28, 1999: 10:34 p.m. ET
Expected rejection by regulators finishes off transatlantic partnership
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NEW YORK (CNNfn) - British Airways and American Airlines have canceled plans to create a global aviation alliance, according to the Financial Times newspaper.
The two airlines pulled the plug on their agreement Wednesday after learning the U.S. Department of Transportation planned not to grant the airlines their application for immunity from antitrust proceedings, the newspaper said.
The death of the BA-AA alliance, which follows failed talks on a new aviation accord between Britain and the United States, throws into doubt the future of Oneworld, the powerful international airline grouping set up by BA and AA last year, the newspaper said.
Oneworld also includes Australia's Quantas, Canadian Airlines, Cathay Pacific, Iberia of Spain and Finnair. Ireland's Aer Lingus was to have been the latest member, having won permission to join from the Irish government last week.
The group was set up to compete with the Star Alliance led by United Airlines (UAL), Lufthansa, SAS , Air Canada, Brazil's Varig and Thai Airways. American Airlines announced an additional marketing alliance with Swissair and Belgium's Sabena in June.
Under the alliance, BA and AA would have shared revenue on transatlantic flights, and coordinated pricing and schedules.
Regulators in the United States, England and the European Union have balked at the alliance plan.
European Commission demands that BA give up 267 weekly slots at London's Heathrow airport to make room for competition proved particularly hard to swallow.
-- from staff and wires
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