PRESS DIGEST - British business - Aug 10

The Mail on Sunday

BA WILL GIVE UP HUNDREDS OF US FLIGHTS

British Airways (BAY.L) is preparing to win the backing of US authorities for a tie-up with American Airlines by surrendering its right to hundreds of transatlantic flights worth tens of millions of pounds. Willie Walsh, BA's chief executive, sees it as a price worth paying to secure a three-way alliance with AA and Spain's Iberia. BA is meeting officials of the US Department of Justice early this week and will offer to give up the flights in hopes of gaining immunity from US anti-monopoly laws, paving the way for the tie-up.

HSBC TO POACH RETAIL CHIEF

HSBC (HSBA.L) has hired headhunter JCA Group to find an executive from among the country's leading retailers to reinvigorate its UK business. HSBC has said it needs someone to "significantly improve customer service" and is thought to be scouring the ranks of executives at Tesco (TSCO.L), Marks & Spencer (MKS.L) and The Carphone Warehouse to fill its job brief. The brief emphasises the need to "sell services properly and keep them sold", in a tacit admission of the risk of mis-selling financial products.

RETAILERS CAP STAFF BONUSES