Britain banned transatlantic air fare discounts.

Britain’s Civil Aviation Authority, exercising under its rights under a U.S.-British agreement, dealt a severe blow to a transatlantic air fare war by prohibiting the discounts. “We’re sort of back to a square-one situation now,” said John Lampl, a New York-based spokesman for state-run British Airways, which had been participating in the fare war that offers travelers up to $200 off customary fares.