THE British Airline Pilots' Association today dropped its High Court claim for a declaration asserting its right to take industrial action over BA's proposed OpenSkies service.

Balpa had asked Mr Justice McCombe, in London, to rule that its right to strike over the new carrier was unlimited by BA's rights to establish operations in other EU states under Article 43 of the EC Treaty.

The union is concerned that the airline, which will fly passengers from European mainland capitals to the US, will use BA planes, support staff and managers but not BA pilots.

Its counsel, John Hendy QC, had said it was acting responsibly in not calling for industrial action - despite a February ballot producing an 86% vote in favour - until it was clear whether it was acting lawfully.

But, three days into a hearing which was due to last two weeks, Mr Hendy told the judge that it had not been possible, after a day of out-of-court negotiations, to reach agreement in the litigation or in the underlying industrial dispute.

He said: "We reached the position where I formally wish to discontinue these proceedings."

BA has said that Balpa's demand that it extend the scope of its mainline collective agreements, which apply to flying from its UK bases, to OpenSkies would make the establishment of OpenSkies pointless, because the cost and complexity the UK arrangements would add to its business would mean that it would fail.

It claimed that a strike would cost BA £100 million and cause huge and disproportionate damage to the airline and the travelling public.