British Airways close to agreeing American alliance

By John Bowker and Jui Chakravorty

LONDON, Aug 8 (Reuters) - British Airways (BAY.L) is confident it can lodge an application in the United States to seek antitrust immunity for an alliance with American Airlines (AMR.N) next week, a source familiar with the matter said.

The source said talks between the two airlines about the alliance were still continuing on Friday but it was hoped they would soon reach a positive conclusion.

A spokesperson for American Airlines said it "continues to have conversations" with British Airways regarding an alliance, but a decision had yet to be made.

British Airways declined to comment. (Editing by Will Waterman)