BA alliance 'set to go ahead'

BRITISH Airways‘ alliance with US rival American Airlines is set to be approved with outline plans in place by the end of the year, according to a report in Sunday Business.

The newspaper said that Prime Minister Tony Blair used his recent summit in Washington to raise the issue with senior Whitehouse representatives.

However, US senator John McCain has said he will this week oppose the proposed alliance in a letter to the Department of Transportation. He is understood to object to the alliance's terms and is likely to say that it gives too much power to both airlines.