GULL AIR FILES TEXAS AIR <TXN> ANTI-TRUST SUIT
<Gull Air Inc> said it filed an
anti-trust suit against Texas Air Corp, charging the airline
broke a marketing agreement and undertook predatory business
practices aimed at shutting down Gull Air.
    Gull Air, flying commerical routes in some 20 cities in the
Northeast, Florida and the Bahamas, said it reached a feeder
agreement with Texas Air Corp in March 1986.
    Under the five year marketing pact, Gull said it
coordinated its flights with Texas Air, Continental, Eastern
and New York Air, to facilitate connections and increase its
business.
    But when Texas Air acquired People Express Inc and its
units, including Bar Harbor Air Line and Provincetown-Boston
Airline, the privately-held Gull became a competitor to the
Texas Air units, the company said.
    The company said Texas Air then broke the five year
agreement previously reached with Gull, causing it to lose
millions of dollars.
    A company spokesman said Gull has not yet set a monetary
value on the amount on the damages it is seeking in the suit.
 Reuter
