
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 8, 1990                   TAG: 9003081585
SECTION: BUSINESS                    PAGE: C-9   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

EASTERN ROUTE SALE WINS JUSTICE OK

The Justice Department has no objections to the planned purchase of Latin American routes by American Airlines from Eastern Airlines, the department said Wednesday.

The proposed $471 million transaction still must be approved by the Transportation Department and the New York bankruptcy court overseeing the Eastern reorganization.

Completion of the sale is necessary for final approval of a reorganization agreement between Eastern and its unsecured creditors. Under that accord the unsecured creditors, who are owed $980 million, would get about $490 million in cash and notes.

Also on Wednesday, the House sustained President Bush's veto of a bill to have the government intervene in the year-old Eastern Airlines dispute, dealing a blow to organized labor and Democratic leaders.

The vote of 261-160 to override the president's veto was short of the two-thirds majority needed. - Associated Press

by CNB