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BA close to USAir stake

Saturday 13 March 1993 19:02 EST
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BRITISH AIRWAYS looks set to receive approval from the US authorities for its proposed dollars 300m ( pounds 208m) investment in USAir.

Specialists in Washington said that although the White House had not yet made a final decision, a favourable outcome for BA now appeared almost certain.

Frederic Pena, US Transportation Secretary, has recommended approval of the proposed investment, the specialists said.

If the deal gets the go-ahead, it will be a blow for the other leading US airlines, which have campaigned hard to have it blocked.

The investment will give BA 19.9 per cent of USAir's voting shares.

It appears that Mr Pena's recommendation has been partly influenced by concern not to provoke overseas discrimination against US airlines.

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