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

DATE: TUESDAY, March 12, 1991                   TAG: 9103120093
SECTION: BUSINESS                    PAGE: A-3   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

UNITED, AMERICAN TO FLY HEATHROW

American and British negotiators reached agreement Monday on arrangements to permit two strong U.S. airlines, United and American, to replace two weaker rivals, Pan AM and TWA, at London's Heathrow Airport. Pan Am and TWA will be paid a combined $735 million for giving up the prized London routes.

The agreement, which came after months of contentious bargaining, also gives British airlines greater access to lucrative U.S. markets and paves the way for a new round of talks on expanding the British and U.S. air travel markets. Transportation Secretary Samuel Skinner said those negotiations could begin within a month and could result in a significant easing of restrictions on air travel between the two countries.

Under the agreement, the British will allow the strapped Pan American World Airways and Trans World Airlines to sell their London routes to United Airlines and American Airlines for $290 million and $445 million respectively. The United States agreed to permit a second British airline, other than British Airways, to fly to the United States from Heathrow and increased the numbers of cities in Latin America, Canada and Asia to which British flights can continue after stopping at U.S. airports. - Associated Press

by CNB