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

DATE: SATURDAY, March 19, 1994                   TAG: 9403190071
SECTION: BUSINESS                    PAGE: A-4   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Medium

UNITED STATES, GERMANY WILL EXPAND AIR LINK

The United States and Germany have signed a memo of understanding that\ could expand airline service between the two countries, the Transportation\ Department said Friday.

Under the agreement, U.S. airlines will be able to "code-share," or offer\ service on another airline's aircraft, Transportation Secretary Federico Pena\ said.

The announcement came a day after Pena extended a similar agreement between financially troubled USAir and British Airways, which holds a 24 percent stake in the American carrier.

Code-sharing, permits an airline to book through passengers onto its partner airline's flights. In the case of USAir, for example, it gives passengers from Roanoke Regional Airport direct access to major British airports, including London's popular Heathrow, through connections in Charlotte, N.C. and Baltimore.

The arrangement announced Friday will permit U.S. carriers to offer new service between the United States and Germany and to many other countries, including markets that generate too little traffic to support service by a U.S. airline using its own planes, officials said. Frankfurt is major hub for flights to the Middle East and Africa.

U.S. airlines also will be permitted to offer service to Germany by code-sharing with third-country airlines via an intermediate point starting in November, the department said.

U.S. carriers will be able to code-share with German airlines to carry U.S.-Germany passengers between points within Germany.

The memo also calls for the establishment of a committee of representatives of both countries to meet by May 15 to begin developing the details of a more liberal agreement for all services.

The British deal has been a major benefit for USAir, and officials have worked hard for its renewal. Among the forces lined up against them were other major airlines and many members of Congress.

Indeed, officials of Delta Air Lines and American Airlines had even suggested renouncing the current U.S.-British aviation agreement. Other carriers have complained that the agreement, signed by the Bush administration, is unfair to them and have demanded more opportunity to fly into Heathrow.

United and American airlines have flights into Heathrow, and code-sharing permits USAir to book passengers there on BA flights. Delta is limited to London's Gatwick Airport and wants to fly into Heathrow as well, while United and American want more slots at Heathrow.

Britain has resisted more U.S. service to Heathrow, the most popular European destination for business travelers.

by CNB