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

DATE: FRIDAY, February 15, 1991                   TAG: 9102150213
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: The Washington Post
DATELINE: WASHINGTON                                LENGTH: Medium

EASTERN SALE MAY BE BLOCKED

The Justice Department Thursday said it would attempt to block a sale of Eastern Air Lines's landing and takeoff rights at National Airport to United Airlines, a move that appears to clear the way for a sale to Northwest Airlines.

United had bid $35.5 million and Northwest $35.25 million earlier this month for 67 Eastern slots and five gates at National being auctioned off by the court overseeing Eastern's bankruptcy.

But the Justice Department Thursday said it would file an antitrust suit to stop the sale to United on the grounds that it would reduce competition at National.

U.S. Bankruptcy Judge Burton R. Lifland in New York is scheduled to rule today on the sale of Eastern's slots at National, each of which is the equivalent of one landing and takeoff.

Sources involved in the bankruptcy case said Thursday they were certain that Lifland would now award the access rights to Northwest.

There is a possibility that another airline could enter a bid for access to National, but that appeared unlikely.

Northwest was cautious in its reaction to the Justice Department decision. "We're very pleased," a Northwest spokeswoman said. But she cautioned that it was still up to the bankruptcy court. United Airlines said it was "disappointed" by the government decision, but gave no indication it would fight it in the courts.

Northwest said Thursday that if it does get the National slots, it will establish non-stop service to eight Florida cities, including Miami and Tampa, that it now serves from other airports. In addition, an airline spokeswoman said, Northwest will probably start serving New York City and Philadelphia from National.

by CNB