from www.ananova.com BA merger with American Airlines collapses A proposed merger between two of the world's biggest airlines has been called off after the two companies say conditions imposed by the US government were too harsh. Air passengers were promised thousands more transatlantic flights and better prices if the link-up between British Airways and American Airlines had gone ahead. But a joint statement from the two airlines says the move will not now go ahead because the conditions imposed by the US Department of Transportation were "unrealistic." British Airways' chief executive Rod Eddington and Don Carty, chairman and chief executive of American Airlines, says the decision is a disappointment. In a statement, they said: "We will not do this deal at this price. We made it clear from the start that we would not conclude the deal if the regulatory price was too high. Regrettably this has proven to be the case. "The conditions laid down by the US government do not make sense for either company. We will not acquiesce to unrealistic, and in our view, unnecessary demands. For us the price is just not right. "We simply sought to have the same commercial advantages and deliver the same consumer benefits that rival airline alliances and their passengers already enjoy. Consumers will now be denied the substantial range of benefits that would have arisen from a closer alliance between our two great airlines." The alliance would have seen the two carriers jointly selling tickets on some routes but the pair would have had to free up around 224 take-off and landing slots to other operators. Story filed: 19:47 Friday 25th January 2002 --------------------------------- Do You Yahoo!? Yahoo! Auctions Great stuff seeking new owners! Bid now!