Airlines Urge U.S. to Block Alliance

The chairmen of Continental Airlines Inc., Delta Air Lines Inc., Trans World Airlines Inc., United Airlines Inc. and US Airways Inc., and also the chairman of Tower Air Inc., a large charter airline, are urging the Clinton administration to block an alliance between American Airlines Inc. and British Airways unless Britain agrees to provide much more access to other U.S. carriers. The demand comes as the U.S. and Britain are preparing to start talks next month on an “open skies” agreement that would let airlines fly between the countries without restrictions. The six other airlines argue that together American and British Air control about 60% of the passenger seats between the U.S. and London, and 87% of what they consider to be the “prime time” slots at Heathrow. A U.S. Transportation Department spokesman said that before the agency grants antitrust immunity to the alliance, which it has the power to do, there will have to be a new open-skies agreement with the British government giving “competitive access for airlines to London that will be a major victory in the fight to liberalize global aviation and for all American airline companies.” An American Airlines spokesman said the carrier has always been willing to craft a deal that would give other U.S. carriers access to Heathrow.