Swissair AG, Europe's fifth largest carrier, has intensified discussions on forming an alliance with British Airways, the Swiss daily Le Temps reported, citing an unnamed executive at SAirGroup. Jeffrey Katz, Swissair's chief executive, is said to favor a link-up with his former employers at American Airlines and its European partner BA, after saying in June that he doesn't see much advantage to joining an alliance with Air France, which has linked up with Delta Airlines. Philippe Bruggisser, SAir's chief executive and Katz' boss, is meanwhile "seriously" studying the option of maintaining Swissair's long-stnading alliance with Delta.

Bruggisser earlier this year said the alliance with Delta added 50 millions Swiss frances to SAir's 1998 operating profit.

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