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-Analysts say BA's adverse reactions may be premature.

Airline industry analysts have suggested that British Airways' (BA) adverse reaction to the proposed purchase by Lufthansa of a 20% stake in British Midland Airways (BMA) may be premature as the acquisition could work in BA's favour. A spokesperson for Salomon Smith Barney has suggested that

the increased access at London-Heathrow airport afforded to Lufthansa through its stake in BMA may give BA a 'bargaining chip' with which to win a deeper alliance with American Airlines. Following the announcement of the Lufthansa/BMA deal, BA has apparently indicated that it may seek antitrust immunity for its deal with American Airlines, which some analysts think may be more favourably looked upon due to the other carriers' link up.

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