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U.S., British Halt Talks on Heathrow Landing Rights

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From Associated Press

U.S. and British government officials suspended negotiations Friday on their dispute over granting United Airlines and American Airlines access to London’s Heathrow airport.

The two sides, which held talks Thursday and Friday, discovered a gap in their positions and said they had not set a date for resuming talks.

No progress was being made in the negotiations, said Cyril Murphy, a United Airlines executive.

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The British offered to meet again in January, said a spokesman for the British Department of Transport, who requested anonymity.

American said Sunday that it would buy TWA’s London and other overseas routes for $445 million. United agreed in October to buy most of Pan Am’s London routes for $400 million.

The airlines are trying to secure access to Heathrow, which is Britain’s most attractive airport because it is closer to central London, is served by the subway system and offers more air connections.

But British law has barred new entrants from the congested airport since 1977 and diverted them to London’s Gatwick and other British airports.

United and American are hoping to get in through an air services agreement between the United States and Britain allowing successors to existing U.S. airlines to assume their Heathrow rights.

Both airlines have said the deals will not proceed if they don’t win access to Heathrow.

A source at one of the U.S. airlines said the British officials want to restrict the right of U.S. airlines to fly from London onward to continental cities.

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