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AA, BA rework alliance
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June 25, 1998: 6:40 a.m. ET
British Airways, American Airlines step up pressure with new plan
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NEW YORK (CNNfn) - British Airways and American Airlines are reportedly willing to hold off their big transatlantic alliance until rivals start more daily services between London's Heathrow airport and the United States.
The new offer steps up pressure on regulators to approve the deal but still falls short of concessions they had required.
American and BA offered to postpone their deal until rivals have enough Heathrow landing and take-off slots to launch 14 return services to the United States, the number American has now, according to published reports.
European regulators are set to make a long-delayed decision on the alliance, announced in 1996, in the next several weeks. Competing airlines have complained the deal, if allowed, would put them at a disadvantage in the Atlantic market.
The alliance, which would control 60 percent of traffic between the United Kingdom and the United States, foresees revenue sharing and cooperation between the two airlines.
Shares of AMR Corp., American Airlines' parent (AMR), gained 9/16 to 80-3/4, while British Airways' U.S. issues (BAB) fell 1-1/8 to 105-1/2.
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