United Is Seeking to Enter European Market by 1990

United Airlines, one of the largest U.S. carriers in the Pacific, said Tuesday that it was seeking permission to fly to seven European cities in a bid to become a global air carrier.

United said it has asked the U.S. Department of Transportation for authority to fly to Paris, Milan, Rome, London, Glasgow, Warsaw and Budapest. The airline said it expects to begin flying some of the routes in 1990.

United Chairman Stephen M. Wolf said the airline’s transatlantic expansion, combined with the Pacific and domestic routes, would create “a truly global airline in the 1990s.”

A Force in Pacific Region

Shares in UAL Corp., the parent of United Airlines, rose $3 to close at $177.75 in trading on the New York Stock Exchange on Tuesday. UAL’s shares have been climbing in recent weeks, fueled by takeover speculation.

A transatlantic expansion has been on United’s drawing board for some time. Though it is a force in the fast-growing Pacific region, United is the only major U.S. air carrier without European flights. When United placed its record-breaking $15.7-billion aircraft order in April and a $3-billion order in May, many within the industry expected the airline to deploy some of those planes in Europe.

United’s expansive burst will still leave it behind Pan Am Corp., TWA Corp. and arch-rival American Airlines in the transatlantic market. American’s transatlantic flights are especially grating to United, since American serves nine of its 13 European destinations from Chicago, United’s headquarters city and domestic hub.

Pan Am, TWA and American said Tuesday that they were studying United’s announcement. United’s competitors could try to block its application to serve Europe by lodging objections with the Transportation Department. Besides the required permission from the Transportation Department, United also needs clearance from the countries it plans to serve. Normally, such clearance is the subject of negotiations between governments.

In pushing ahead with its expansion plans, United is bucking a recent trend in which U.S. airlines are creating global networks by teaming up with European carriers. In the latest example, Delta Air Lines and Swissair agreed to buy 5% stakes in each other and coordinate flight schedules.

United decided to go it alone because “we feel we have the internal strength and can build on our domestic route system and route structure in the Pacific,” said Sara Dornacker, a United spokeswoman.

United said it plans to fly to Europe from Chicago, Washington, New York and San Francisco. United added that since 1980 it has had authority to fly to Frankfurt, West Germany, and plans to begin service there next May.

Industry analysts speculated that United’s European push would strain its frequent-flier partnership with British Airways. Under a marketing agreement, United routes many Europe-bound passengers to British Airways, and British Airways directs U.S.-bound travelers to United.

However, British Airways said Tuesday that it welcomed the competition from United and expected that the two airlines would continue to work together. “We would hope and insist any additional British rights that would be awarded to a U.S. flag carrier would be reciprocated by further opportunities in the USA marketplace,” British Airways said in a statement.