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Friday, Sep. 18, 1998
Airlines protest merger
Carriers say American, British Airways too big
Associated Press
WASHINGTON - A half-dozen U.S. airlines are complaining that a proposed deal between American Airlines and British Airways could threaten competition.
The combination would create ``the most powerful alliance in international aviation history,'' the airlines said in a letter to Transportation Secretary Rodney Slater.
British Airways and American Airlines have asked their respective governments for permission to form a cooperative alliance, coordinating flights and selling tickets on combined services.
Approval of that request has been delayed as the British and American governments discuss revisions in the air transportation agreements between the two nations. The United States wants increased access to London's popular Heathrow Airport for U.S. carriers.
``Antitrust immunity for this alliance would require a new open skies agreement with the British and competitive access for airlines to London's biggest international gateway,'' Transportation Department spokesman Bill Schulz reiterated Thursday.
That, he said, ``would be a major victory in the effort to liberalize global aviation, and for all American airline companies.''
In their letter to Slater, executives from the six airlines worry that a BA-AA combination would control about 60 percent of the available airline seats between the United States and London, and 87 percent of the prime landing slots at Heathrow.
Signing the letter to Slater were executives of Continental Airlines, Delta Air Lines, Tower Air, Trans World Airlines, United Airlines and US Airways.
They urged Slater to obtain absolute guarantees from British officials for more landing slots for U.S. carriers, accompanied by ground facilities on reasonable terms, including guarantees of future slots for expansion.
The executives noted that they compete with one another in the international market but all fear ``substantial harm'' from the proposed British Airways-American Airlines agreement.
Most of the concerned airlines also have their own cooperative agreements with foreign carriers.
US Airways formerly had such a deal with British Airways before the English carrier ended the agreement and began negotiating with American Airlines.
United is part of the Star Alliance, an international cooperation agreement that includes Air Canada, Lufthansa German Airlines, Scandinavian Airlines Systems, Thai International and the Brazilian airline Varig.
Among other so-called code-sharing agreements, Continental cooperates with Alitalia and Air France; Delta has agreements with Air France, Austrian Airlines, Swissair and Sabena and TWA has deals with Air Europa, Air New Zealand and Royal Jordanian.Post your comments about local news eventsFront Page || Main Index || News || Business || Texas || South Texas Outdoors || Birdwatching || Sports || Entertainment || Selena || Education || South Texas Attractions || World Wide Web