July 9, 1998

European regulators propose preliminary conditions that appear to clear way for approval of alliance between American Airlines and British Airways PLC that will dominate air traffic across Atlantic; European Commission angers UAL Corp's United Airlines, Lufthansa and Scandinavian Air System by proposing retroactive restrictions on their two-year-old alliance; moves sharpen tensions between European Commission and Clinton Administration as well as between commission and its own member states concerning international aviation competition at a time when increasing number of world's airlines have entered into cross-border alliances that have received exemptions from US antitrust laws (M)

Sen Trent Lott, Republican majority leader who has blocked efforts of Democrats to add amendments to bill that would set nationwide product liability standard, himself sponsors amendment that would significantly benefit major company in his home state of Mississippi; bill is designed to set first nationwide limits on court awards for injuries caused by faulty products; Lott's amendment would help Baxter Healthcare Corp, one of Mississippi's largest employers, by extending liability protection to materials and components used in 'containers and their related products' to collect fluids or tissue; Baxter lost lawsuit and was ordered to pay $18 million to family of woman who suffered brain damage because of faulty intravenous unit with malfunctioning tube supplied by Baxter; in proposed bill, Baxter would be immune from similar lawsuit in future (M)

Market for high-end audio equipment lags far behind the growth of personal wealth in recent years; total sales for high-end part of audio market are estimated at less than $500 million, compared with total home electronics market of $75.1 billion; high-end audio sales rose in 1997, but some companies had declines; demographic and economic factors are holding down growth, and technological trends threaten industry's relevance; photos (M)

France beats Croatia, 2-1, in semifinals of World Cup and will play Brazil for championship; photos (M)

Peter Marks reviews presentation of Joshua Sobol play, Village, by Gesher Theater of Israel at Lincoln Center Festival '98; photo (M)