BA shares sink on threat from 'Open Skies' deal

0 Comments | AFP, March, 2007

LONDON (AFP) — Shares in British Airways tumbled Monday on fears that increased competition from rival airlines on transatlantic routes could bite into the group's profits.

Shares dived by as much as 9.5 percent on the London stock exchange after EU and US negotiators Friday concluded a draft 'Open Skies' deal aimed at freeing up the transatlantic aviation market, which is dominated by BA, Virgin Atlantic, American Airlines and United Airlines.

In early afternoon trading, shares were off their earlier low, but still showed a loss of 6.63 percent to 496.25 pence on London's FTSE 100.

The British capital's leading share index was down 1.68 percent at 6,013.60 points.

Global stock markets are falling heavily as investors take profits and cut their...