British Airways says it is scaling back its plans for an alliance with American Airlines because conditions set by international regulators are too tough.

The regulators of both the European Union and the United States have been calling on BA to give up more than a third of its transatlantic landing slots to rivals to ensure greater competition.

In another development, the European Commission has announced it is taking legal action against eight member countries -- including Britain -- over individual arrangements on air space they have made with the United States.

It says separate accords weaken its position in any future negotiations for a Europe-wide open skies agreement.