Consumers Oppose AMR-BA Alliance

The proposed link between AMR Corp.’s American Airlines and British Airways will stifle competition and should be rejected on antitrust grounds or drastically modified, rival airlines and a consumer group said. At a Senate Judiciary antitrust subcommittee, officials of Consumer Federation of America said it would give American and BA more than 60% of the transatlantic market and squeeze out potential competition. But American spokesman Dave Schwarte defended the alliance, saying it gives American and BA no special advantage but only the benefits other U.S. carriers enjoy. The marketing alliance is under review by U.S. antitrust authorities and British and European competition agencies. Even if the eal passes antitrust muster, the Clinton administration says it will not be approved until Washington and London reach an “open skies” aviation agreement.