April 6, 2004

United to End Partnership With Smaller Airline United Airlines and Atlantic Coast Airlines, which operates as a regional carrier under the United Express name, agreed to sever their relationship by late summer, ending a long and bitter dispute. At the same time, Atlantic Coast said its new low-fare subsidiary, Independence Air, would begin flying June 16 using Washington Dulles airport as its hub. The airline will use the gates that now handle United Express flights, and will serve many of the same routes. [Page C2.]

American officials in Iraq confirm they have issued arrest warrant for Moktada al-Sadr, militant Shiite cleric whose followers started uprising in six Iraqi cities over weekend; Sadr says he would 'welcome' showdown with American forces; has pledged to drive them out of Iraq; warrant for his arrest is issued in connection with shooting and hacking to death of rival Shiite cleric at mosque in Najaf last Apr; announcement, months after warrant was secretly approved, seems timed to coincide with new American military offensive; American troops appear to be moving into area around Kufa, where Sadr's followers have seized control and cleric has taken refuge in heavily guarded mosque; marines move into Falluja, where four American security guards working for occupation authority were killed in ambush and then mutilated last week; American officials are taking tough stance instead of seeking, as they have in past, to avoid confrontation that might fan antagonism for Americans; they appear determined to try to seize Sadr; American administrator L Paul Bremer II calls him an outlaw; photo; maps (L)

Prosecutors in office of Manhattan district attorney are probing US unit of French banking giant BNP Paribas after receiving information from few bank employees that some executives may have engaged in improper banking practices; BNP Paribas managing director Edward V Canale is placed on leave while investigation continues; is in charge of bank's asset workout group, which deals in securities of distressed or bankrupt companies for bank's customers and for its own account; prosecutors have been told group failed internal audits for at least three years, and that in most recent period, at least $4 million was accounted for in group's profit and loss statement; bank is cooperating fully with government's probe (M)

Connecticut University defeats Georgia Tech University, 82-73, to win NCAA men's tournament; photos (M)

William C Rhoden Sports of The Times column contends that Connecticut University men's basketball coach Jim Calhoun, who led team to second NCAA championship, belongs in Basketball Hall of Fame as one of college basketball's most dedicated and skillful coaches; photo (M)