One If by Land, Two If by Sea . . .

A chunk of USAir gives British Air a foothold in the American market

The encounter this time was far friendlier than at Lexington and Concord. In one of the biggest cross-border deals to date, British Airways agreed to acquire a 44% equity stake in USAir for $750 million. If approved, the transaction will result in the largest airline alliance ever and could accelerate worldwide consolidation of the industry. The most immediate impact, though, will be to rescue the Arlington, Va., carrier from a cloudy financial future. After expanding rapidly in the late 1980s, USAir was blown off course by the economic recession and a slowdown in air travel. It has lost more than $800...

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