THE proposed British Airways and American Airlines alliance
will not go ahead because the regulatory price is ‘too high’.
The US Department of Transport is reported to have insisted the
two carriers divest 224 take-off and landing slots between Heathrow and cities in
the US.
In a joint statement, BA chief executive Rod Eddington and American
Airlines chairman and chief executive Don Carty said: “We will not do this deal
at this price. We made it clear from the start that we would not conclude the deal
if the regulatory price was too high.
“Regrettably this has proved to be the case.
“The conditions laid down by the US government do not make sense
for either company. We will not acquiesce to unrealistic, in our view, unnecessary
demands. For us the price is just not right.”
Both airlines have vowed to continue working together as much
as possible in the existing legal boundaries.