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AUSTRALIA-U.S. AVIATION SANCTIONS LIFTED

 WASHINGTON, June 17 /PRNewswire/ -- The Embassy of Australia issued the following:
 Australia and the United States have agreed to lift proposed sanctions in the dispute involving Northwest Airlines services between Australia and Japan.
 The Australian Minister for Transport and Communications, Sen. Bob Collins, announced the decision today following an intense round of negotiations between Australia and the United States. "The decision will take the heat out of the situation and allow both Australia and the United States to consult on the broader issues underlying this dispute," he said.
 Collins said Australian and U.S. authorities would be exchanging formal letters of understanding. The letters contained a number of key elements to avoid the introduction of sanctions from July 1. These included a provision for a stay in legal proceedings in the dispute.
 Australia will allow Northwest to resume operating three services a week from July 1 on the New York-Osaka-Sydney route on condition the number of Osaka-Australia uplift/discharge passengers does not exceed 50 percent of seats occupied between these two points.
 The United States will withdraw its orders to cancel three Qantas- Los Angeles services. The services will be allowed to operate without restrictions. Northwest Airlines' operating approval would extend only to the end of December this year, and renewal of its approval would be subject to a review of its performance during this six months. The airline would immediately withdraw all of its actions in the federal court against the Australian government.
 It would also withdraw its application for Detroit-Tokyo-Brisbane services, but with Australia's agreement, will substitute Detroit for New York as the origin of its services via Osaka from Sept. 15. Qantas would withdraw its requests for additional services to Los Angeles and San Francisco.
 Collins said both sides had agreed to suspend arbitration while consultations are underway. The consultations would begin as soon as possible.
 "I am pleased a negotiated agreement has been reached," Collins said. "An escalation of this dispute was in the interests of no one, a fact appreciated by both governments."
 The negotiated agreement follows constructive talks between the Minister of Trade, Sen. Peter Cook, and the U.S. Secretary of Transportation Federico Pena in Washington last week. Subsequent negotiations were held between Pena and Collins and senior officials of both governments.
 -0- 6/17/93
 /CONTACT: Embassy of Australia, Public Affairs Office, 202-797-3000/


CO: Embassy of Australia; Northwest Airlines; Qantas ST: District of Columbia IN: AIR SU:

MH-DC -- DC013 -- 3076 06/17/93 12:10 EDT
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Publication:PR Newswire
Date:Jun 17, 1993
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