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From Times Staff and Wire Reports

USAir Deal Stalled by ‘Open Skies’ Talks: The failure of talks between the United States and Britain over competition between the two countries’ airlines has left a cloud over a $750-million deal between British Airways and USAir Group Inc. Industry sources said the lack of an accord at this week’s “open skies” talks in London has dimmed prospects for a deal before a Christmas deadline. The talks broke off Thursday, but late Friday a U.S. official said a new round of talks would open Tuesday in Washington. Time is running out for British Air to conclude its deal to invest $750 million in USAir in exchange for a 44% stake in the carrier. The governments are using approval of the airline deal as a bargaining chip for a deregulated--or open skies--air services agreement between the two countries.

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