ROANOKE TIMES

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

DATE: WEDNESDAY, March 17, 1993                   TAG: 9303170211
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Short


IN BUSINESS

Lawsuit `cure' called worse than fare-fixing

WASHINGTON - Consumer and travel industry groups on Tuesday urged the Clinton administration to stop backing a proposed settlement of a suit that accused airlines of conspiring to fix ticket prices.

The proposed settlement will deprive air travelers of information about discounts and coming fare increases, the groups said.

The groups, led by the Public Citizen, a consumer group, and the American Society of Travel Agents, told a news conference the proposed cure for the alleged price-fixing is worse than anything the airlines have done.

The Justice Department, after a three-year investigation, accused eight airlines in December of sharing planned fare changes through a jointly owned computerized reservation system. The government said the scheme let the industry adopt a fare increase when one carrier announced one.

United Airlines and USAir agreed to settle the suit by not announcing fare increases in advance or the expiration of discount fares. Six others - American, Delta, Continental, TWA, Northwest and Alaska Airlines - are fighting the suit. - Associated Press



by Archana Subramaniam by CNB