AIRLINES

U.S.-Japan Aviation Talks Break Down: The two-day session ended in Washington with Tokyo continuing its refusal to approve expanded flights to Asia for United Airlines, Northwest Airlines Corp. and Federal Express Co. No new talks are scheduled. The carriers are scrambling to make alternative plans for the flights in jeopardy, including ones from the U.S. to Jakarta, Indonesia, via Osaka, Japan, scheduled to start Monday. Both sides want to liberalize a 1952 bilateral agreement to allow more flights and services, but the U.S. first wants Japan to approve the pending route requests by U.S. carriers. The agreement allows U.S. carriers rights to take cargo and passengers beyond Japan to the fast-growing markets of China and elsewhere in Asia. President Clinton and Japanese Prime Minister Ryutaro Hashimoto discussed the aviation issues at G-7 summit in Lyons, France.