Warning to U.S. airlines

Press, 26 April 1982, Page 8

Warning to U.S. airlines

NZPA-Reuter New York The chairman of the United States Civil Aeronautics Board, Mr Dan’ McKinnon has doubts about the future of several American airlines but said he would not recommend any Government rescue plan. He told the New ■ York Society of Securities Analysts: “The carriers and their employees must recognise that this Government

cannot afford, and I would never recommend, any form of ball-out for an airline.” He said after the meeting that the C.AJ3. might consider before the end of July an alternative proposal to transfer Branrff International Corporation's Latin American routes to another airline, other than Pan American World Airways. Pan Am, which has proeto pay $3O million to Branifl's South American routes for four years.

already has routes to the area. . Mr McKinnon said that American Airline's offer to subsidise Braniffs Latin American flights was “an interesting concept,” but the Braniff competitor needed to give details of the plan. Braniff has denounced the proposals by its arch-rival. American Airlines, calling it a barely concealed attempt at keeping Braniff in financial difficulty in hopes of driving it out of the market.