British Airways could become the next victim of the rising tide of U.S. protectionism that sank Dubai Ports World's acquisition of P&O's American ports.

Continental Airlines, America's fifth-biggest carrier, is trying to wreck proposed legislation, supported by BA, that would allow foreign companies to increase their ownership of U.S. airlines.

The so-called Open Skies agreement being hammered out by the U.S. and the European Union would scrap a 1938 law preventing foreign companies from owning more than 25 per cent of a U.S. airline's shares.

BA hopes it will pave the way for a long-sought transatlantic tie-up with American Airlines.

The change is backed by the White House, but Continental has latched on to popular U.S. fears about a possible threat to homeland security by mounting a fierce campaign to persuade congressmen to block it.

Republican congressman Frank LoBiondo warned recently the new rules would mean U.S. airlines could be controlled by "competing - and potentially unfriendly - foreign interests" that could threaten domestic security.

A spokesman for Continental warned the company might take its fight to the U.S. courts if its lobbying proved unsuccessful.

A BA spokeswoman said: "We are monitoring the situation closely to see how things develop."

News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.