EU Imposes Conditions on Air Alliances

BRUSSELS — European regulators said Wednesday that they would approve a planned alliance between British Airways and American Airlines Inc. if the airlines cut back flights at London airports and across the Atlantic.

The European Union’s executive commission also advised similar slot and flight frequency reductions for a planned rival alliance among United Airlines Inc., Germany’s Lufthansa and the Scandinavian Airlines System.

British Airways and American, which have been awaiting clearance from European and U.S. regulators for more than two years, said they had problems with some of the terms proposed by the commission, but were hopeful that their deal could move forward. The commission will finalize its decision in the fall.

The British government, which must give a final ruling, said it was planning to impose similar conditions, defusing a potential jurisdiction conflict that could damage Britain’s relations with the EU and further delay the alliance.

British Airways and American, a unit of Dallas-based AMR Corp., would have to release 267 weekly landing and takeoff slots at London’s airports.

That is more than a third of the 770 slots operated by British Airways and American at Heathrow and Gatwick, based on their schedules for the peak summer period.

The two partners must also reduce their flights on routes from London to Dallas, Chicago and Miami to help competitors get off to a flying start.

AMR shares rose 6 cents to close at $86.94; shares of United’s parent company, Elk Grove Township, Ill.-based UAL Corp., rose 38 cents to close at $89.13. Both trade on NYSE.