SCANDINAVIA PROPOSES DEREGULATING U.S. AIR FARES
Denmark, Norway and Sweden have jointly
proposed deregulating air fares between Scandinavia and the
U.S. In exchange for greater access to the domestic U.S.
Airline market, Norwegian officials said.
    The proposal, handed to federal aviation authorities in
Washington by a delegation from the three countries' transport
ministries, was seen in the industry as a major concession to
demands by U.S. Airlines to deregulate air fares to
Scandinavia.
    The scheme in return requests the <Scandinavian Airlines
System>, owned by Sweden, Denmark and Norway's governments, be
allowed to compete freely and fairly in the U.S. Market.
    SAS, the only Scandinavian airline flying transatlantic
routes to the U.S., Is currently allowed to land at only four
U.S. Cities and has no commercial routes within the U.S.
    SAS has long held that regulations allowing U.S. Airlines'
connecting flights from international to regional airports
within Scandinavia have given these companies an advantage
denied to SAS in the United States.
    Initial U.S. Reaction to the proposal has been positive,
officials said. Industry sources added that if approved, the
scheme would likely lower air fares dramatically between
Scandinavia and the U.S.
 REUTER
