Air Transport World

International carriers fear deregulation but want to taste its fruit.

International carriers fear deregulation but want to taste its fruit London--Deregulation, now a matter of fact in the U.S. for eight years, still is the subject of much deeply-felt international controversy, as revealed by the presentations of a heady mix of senior industry executives at a conference here shortly before the Farnborough air show. "World Aerospace to the End of the Century," a conference sponsored by The Financial Times, also heard a number of discussions about future equipment strategies.

The European Commission never has accepted that a U.S.-style deregulation would be good for the European Economic Community, said Stanley Clinton Davis, trasport commissioner for the EEC. Conditions in the U.S. are quite different to those in Europe, and there is serious doubt that the highest safety standards could be maintained in a world of total deregulation. Evidence of this could be seen in the enormous fines imposed on major U.S. carriers over the past year, he said.

However, he noted that a Commission decision to open legal proceedings against 12 airlines in the EEC for alleged breaches of competition rules was having the desired effect, and negotiations for change in the Community were gathering momentum. Nobody could remain insensitive to the tide of popular demand for lower fares and more fair conditions.

In a talk strongly finged with American ardor for deregulation, C. Edward Acker, chairman and CEO of Pan Am corp., said that his airline expects to enter cooperative agreements with European airlines for through services and joint marketing. Pan Am is interested in providing new competition in Europe in light of regional moves to liberalize air transport. Particularly, the airline is "ready, willing, and able" to operate in more intra-European markets, if and when the regulatory barriers are relaxed. Although traffic was below normal this summer, "We could well be looking at an exceptionally vigorous upturn on the Atlantic next year."

European requests

Acker spoke in favor of an efficient, environmentally acceptable supersonic aircraft able to carry loads large enough to make them economically viable.

Some major European airlines, particularly British Airways and Lufthansa, have standing requests for more access to U. …

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