United fiasco could boost BA

AMERICA'S United Airlines, one of British Airways' biggest rivals, has admitted that it may file for bankruptcy protection. Its woes may ease BA's problems on the key North Atlantic routes.

BA has 41% market share between London and New York. United has 15%. Analysts said that United's crisis will weaken the credibility of its Star Alliance with Lufthansa and British Midland, the main rival to BA's oneworld group.

United, once the world's biggest airline, is trying to slash costs to cope with the slump in air travel, but unions are resisting.

The troubled airline has £11bn net debt. Operating losses last year were £2.4bn. Analysts warn it may need union concessions and government loan guarantees to secure its future. At £78m, its market value is now less than that of online ticket agency lastminute.com.

Earlier this week, US Airways, the sixth biggest carrier in the US, filed for bankruptcy protection, and American Airlines said it is cutting 7,000 jobs and scrapping plane orders in a cost-cutting drive.