United delays takeover of Pacific air routes

Press, 24 January 1986, Page 9

United delays takeover of Pacific air routes

NZPA-Reuter Chicago United Airlines yesterday postponed its planned takeover on January 28 of Pan American World Airways trans-Pacific routes. The delay is because of a dispute over transferring Pan Am’s landing rights in Japan to United. American and Japanese negotiators failed to agree on transferring the landing rights because of a demand that Japan be allowed to increase its cargo flights to the United States.

The issue arose during talks in Tokyo and Washington over the last two weeks, officials of both sides said.

The president and chief executive officer of United, Mr James Hartigan, said lack of progress at the talks forced the postponement. A United States State Department spokesman said he was confident the

impasse would be resolved favourably. The Japanese delegation was reported to be returning home. United applied to Japan’s Ministry of Transportation on December 9 for approval to transfer the landing rights for 33 existing Pan Am flights and 16 planned new flights a week.

It was to be the final key step in United’s SUS7SO million ($1448 million) purchase last April of Pan Am’s transpacific route before the changeover on January 28.

The airline deal, said by United to be the larg-

est in aviation history, was approved by President Reagan and the United States Secretary for Transportation, Elizabeth Dole. United still needs landing rights approval from most of the other countries Pan Am serves. The most important is Japan because most flights go through Tokyo. “Without Japan’s approval, United can’t operate those routes,” the United spokesman said.

Other countries now served by Pan Am are Australia, Taiwan, Singapore, New Zealand, Thailand, the Philippines, Korea, and China.