TRANSPORTATION

France, U.S. Resolve Air-Pact Dispute: The two countries’ transportation officials agreed that Air France will be allowed to make 500 extra flights to four U.S. cities this summer in exchange for France dropping a threatened cut in U.S. airlines’ landing rights. The deal was a relief for state-owned Air France, which is facing a make-or-break year in its bid to become more competitive before European Union skies open to European competition in 1998. A previous air transport pact expired in 1992 and the two countries have since limped along with a slow and cumbersome procedure of case-by-case approval of flight schedules until Washington announced action against Air France last week. In retaliation, Paris last week ordered an equivalent cut on flights by American Airlines, Continental Airlines, Delta Air Lines, Tower Air, United Airlines and TWA.