BA retreats from AA

British Airways has moved to protect its booming profits on transatlantic routes by putting its strategic alliance with American Airlines on the back-burner. The move has implications for Aer Lingus's hunt for a strategic alliance partner, as American Airlines was seen as one potential partner as a means of linking the Irish airline into a major global alliance.

Delayed for more than two years by regulatory rows and the failure of the British and American authorities to reach an "open skies" agreement, the alliance is now likely to be phased in over four or five years.