EU examining three-way deal amid accusations of monopoly

European regulators are examining the proposed alliance among American Airlines, British Airways and Spain's Iberia, even as competitors such as Virgin Atlantic warn of a "monster monopoly" should the deal be approved. American Airlines CEO Gerard Arpey says the move is intended merely to create a level playing field with competitors such as SkyTeam and Star Alliance. But travel industry analyst Henry Harteveldt of Forrester Research believes BA may have to abandon slots at London Heathrow to win approval for the deal. "A lot of this is going to come down to British Airways and what it is willing to give up," he says.

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