British Airways and American Airlines are resigned to the rejection of their transatlantic alliance plans by US regulators, but say they will press ahead with ties not requiring anti-trust immunity. The two are "looking at codesharing" in Europe and North America, the UK flag carrier says.

The US Department of Transportation is expected to reject the alliance application, having failed to persuade BA to agree to surrender slots at London Heathrow as a basis for a new air services treaty. The decision will not be a major blow to the carriers, however, as they decided last year to pursue a less sweeping, staged alliance over the next four or five years.

What can be done under the current Bermuda 2 treaty is unclear - but sources say BA and American are looking at a codeshare on trunk routes in the USA and on European flights beyond BA's London hubs. Codesharing on transatlantic flights would not be permitted under the treaty. BA's codeshare with US Airways foundered a few years ago. British Midland has recently terminated European codeshares with American.

BA-American also aim to "work together at airports, pool facilities and explore joint purchasing and handling" under the oneworld alliance.

Source: Flight International