AMR-British Airways Alliance Is Opposed
The Justice Department said it would oppose an alliance between AMR Corp.’s American Airlines and British Airways unless the carriers agreed to allow more competition at London’s Heathrow Airport.
The Justice Department said travelers would be stuck with less service and higher fares unless American and British Airways give some of their lucrative takeoff and landing slots at Heathrow to other carriers.
The two airlines are seeking antitrust immunity to sell each other’s tickets and work together in setting prices and routes.
American and British Airways said the Justice Department underestimated the competition at Heathrow and the advantages being enjoyed by other airline alliances, such as United and Lufthansa’s hub at Frankfurt.
The Justice opinion is only an advisory recommendation to the Transportation Department, which is expected to decide on the deal early next year.
AMR shares fell 62 cents to $22.50, while British Airways’ American depositary receipts fell 65 cents to $28.70, both on the New York Stock Exchange.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
