Airlines say they'll fight for OK of deal

Article Abstract:

Continental Airlines and Northwest Airlines revealed that they will strive to complete their proposed alliance, despite opposition from the government. The Justice Department filed a suit against the two airlines on Oct. 23, 1998, to block the airlines' alliance, which calls for them to share some flights and for Northwest to invest around $404 million in Continental. According to Assistant Attorney General Joel Kein, the department is opposing the alliance because Northwest has a monopoly on two major routes. Continental and Northwest are seeking to reach a compromise settlement with the Justice Department, but if it fails, the two will still find other ways to defend their pact.

Comment:

Will strive to complete its proposed alliance w/ Northwest Airlines, despite opposition from the government

Government regulation (cont), Strategic alliances, Northwest Airlines Inc., Continental Airlines Inc.

Airlines in a pinch as pilots shun overtime

Article Abstract:

American Airlines and US Airways are likely to cancel some flights in summer of 1998 as pilots reject proposal of the two airlines for voluntary overtime during summer, when air travel is on its peak. TWA pilots, who has been unhappy about the slow pace of negotiations toward a new contract, said the overtime is designed to avoid hiring additional pilots, which could actually increase number of union members. They also stressed that paying overtime to pilots is less expensive than paying benefits and wages to new pilots.

Comment:

Is likely to cancel some flights in summer of 1998 as pilots reject its proposal for voluntary overtime during summer

American Airlines Inc., US Airways Inc.

Airlines vie for flights to China

Article Abstract:

US passengers airlines compete against cargo ailines for the rare opportunity to fly to China. Before the end of year 2000, the Dept of Transportation is expected to decide on rights to fly passenger airlines or cargo airlines to China as stated in a 1999 pact between the two countries. Under the agreement, flights are scheduled to begin in Apr 2001 and will increase to 54 the 44 US airlines a week currently allowed to fly between the US and China.

China, Intnl & Territorial Air Service