Union blow to BA alliance plan

AMERICA'S biggest union has come out against British Airways' latest attempt to expand its alliance with American Airlines - threatening to deal a death blow to the plan.

The proposal would allow BA and AA to operate as a merged airline on transatlantic routes. But the powerful Teamsters Union said President Bush should put BA's application for anti-trust immunity on hold until the full effects of the September 11 terror attacks have been absorbed.

Union president James P. Hoffa said in a letter to the White House: 'In these circumstances, there should not be any rush to conclude an accord that may prove harmful to US airlines, their employees and consumers.'

The union blow followed petitions from 20 US Senators last week urging that the alliance be rejected outright because it would be bad for the industry and consumers in an era of difficult times for BA and AA's competitors.