Europeans act to clear way for air pacts, conditionally

Article Abstract:

The European Commission has proposed preliminary conditions leading to the approval of the alliance between British Airways and American Airlines while proposing retroactive restrictions on the 2-year old alliance between Lufthansa, Scandinavian Air System and UAL Corp. The EU's decisions require BA and AA to relinquish rights to 267 weekly landings and takeoffs at Heathrow and Gatwick airports in London while requiring Lufthansa, Scandinavian Air System and UAL Corp. to relinquish 108 of their slots at Frankfort and Copenhagen airports. The decisions puts the EU in conflict with American regulators by requiring the airlines to temporarily reduce flights on certain routes. The US and British governments still must approve the alliance between BA and AA.

Comment:

European Commission imposes retroactive restrictions on alliance between Lufthansa, Scandinavian Air System and UAL Corp.

United Kingdom, Germany, Government regulation, Sweden, British Airways PLC, American Airlines Inc., Scandinavian Airlines System, UAL Corp., Deutsche Lufthansa AG

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States threaten airlines with antitrust steps

Article Abstract:

Twenty-five state attorney generals expressed their approval of a proposal by the Clinton Administration to encourage increased competition within the airline industry. The states can file an antitrust lawsuit against the major airlines if their proposal does not succeed. The Attorney General of Iowa, Tom Miller, stated that the states would rather have the Administration follow the guidelines that were suggested in April 1998. The guidelines were designed to stop large carriers from forcing out low-cost rivals from major airports.

Comment:

State attorney generals threaten to file antitrust lawsuit against major airlines to promote greater competition in airline ind

Government regulation (cont)

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Northwest and pilots reach an impasse in negotiations

Article Abstract:

Contract talks between Northwest Airlines and its pilots have reached an impasse. The impasse ruling by federal meditators paves the way for a possible strike by early August 1998. The impasse was declared by the National Mediation Board. Since July 1997, the board has been overseeing the talks between Northwest and its 6,300 pilots. The board called on both sides to refer to arbitration. However, only Northwest accepted the offer.

Comment:

Contract talks between Northwest Airlines and its pilots has reached an impasse

Personnel administration, Northwest Airlines Inc.

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