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DOT: UNITED STATES, CHILE RESOLVE AVIATION DISPUTE

 WASHINGTON, Nov. 22 /PRNewswire/ -- The United States and Chile have resolved a dispute which threatened to disrupt air service between the two countries, Secretary of Transportation Federico Pena announced today.
 The dispute began when Chile refused to grant American Airlines permission to increase its nonstop service between Miami and Santiago from seven to 14 weekly flights this winter. Emphasizing that American had a right under the bilateral aviation agreement to increase its services, DOT responded by proposing to cut back on the U.S. flights of Chilean carriers Lan-Chile and LADECO unless the restrictions were lifted.
 Under the new agreement, American will be able to operate its expanded services during the winter and peak seasons, which cover the periods of Dec. 2, 1993-Jan. 31, 1994 and June 15-Aug. 31, 1994. The agreement also allows Chilean carriers to equal American's services during the peak season and to add three weekly flights in the market.
 In announcing the agreement, Pena said: "We are pleased with the settlement and the process by which it was achieved. This demonstrates that we can effectively promote U.S. airline rights, competition and better service for travelers while responding to the most serious concerns of our trading partners. We are also happy that we were able to resolve this matter in a manner that allows us to maintain and strengthen our most liberal aviation relationship in Latin America."
 The new agreement is effective from Dec. 1, 1993, to Nov. 30, 1994. It was formalized by an exchange of diplomatic notes in Santiago on Friday. The two sides agreed to meet before the end of this period to discuss their aviation relationship.
 -0- 11/22/93
 /CONTACT: Bill Mosley of the U.S. Department of Transportation, 202-366-5571/


CO: U.S. Department of Transportation ST: District of Columbia IN: AIR SU: EXE

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Publication:PR Newswire
Date:Nov 22, 1993
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