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Airline pacts grow crucial
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October 7, 1997: 2:35 p.m. ET
British Airways CEO speaks to CNNfn as airline awaits OK
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NEW YORK (CNNfn) - The proposed alliance between British Airways and American Airlines is part of a trend by carriers to stay competitive in an industry where mergers aren't an option, a top executive involved in the deal said Tuesday.
Robert Ayling, chief executive of British Airways, told CNNfn that airlines have had to consider pairing up with competitors in order to keep costs down.
"It's a very complicated business," Ayling said. "It involves both competition issues and aeronautical regulatory issues."
Mergers, Ayling said, aren't possible under the laws of the United States or European countries. (209K WAV) or (209K AIFF)
"You can't merge across frontiers like you can in other industries," he said.
Ayling's remarks came as a European regulator planned to meet with both airlines to talk about the deal.
The regulator, European Competition Commissioner Karel Van Miert, said there's been little progress on the deal in the 15 months since the commission started its review.
Both airlines will have to come up with solutions to Europe's worries about competition, Van Miert said.
"In the coming weeks, there will be discussions to find adequate solutions to the competition problems," Van Miert said. He said the EU probe would take a few more months. 
-- Staff and wire reports
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