American Airlines drops alliance with British Airways

American Airlines has abandoned plans to work with British Airways in setting routes and fares for US/London flights.

The alliance was blocked last month when the Transportation Department said it would oppose granting antitrust immunity to the airlines unless they surrendered 224 weekly takeoff and landing slots at London's Heathrow Airport.

Analysts said that was too high a price for British Airways.

On Wednesday, American and British Airways filed a document with the Transportation Department to dismiss their alliance application.

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