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RENO AIR SAYS IT WINS BATTLE FOR NEW ENTRANTS: NORTHWEST PULLS OUT

 RENO, Nev., March 25 /PRNewswire/ -- Reno Air Inc. (NASDAQ: RENO (common stock), RENOU (units), RENOW (warrants)) officials said today they are pleased by the quick response of the Department of Transportation (DOT) and the Department of Justice (DOJ) in their complaint against Northwest Airlines. As a result, Northwest announced today it will drop plans to enter three of Reno Air's markets.
 During the past few weeks, Reno Air has advised both departments, as well as Congress, that Northwest's actions were illegal, anti- competitive and calculated to prevent Reno Air's entry into the Minneapolis-Reno market. When Reno Air refused to back down on the route, which is scheduled to begin April 1, Northwest announced it would duplicate Reno Air's Seattle-Reno, Los Angeles-Reno and San Diego-Reno routes.
 "We're not afraid of healthy competition," said Jeff Erickson, president and chief executive officer of Reno Air. "But a large, entrenched, incumbent airline shouldn't use its market power to forestall new competition."
 As a new, low-cost entrant operating out of its hub in Reno/Tahoe, Reno Air managed to turn a profit in only its second quarter of operation. The carrier employs more than 600 people in the Reno/Tahoe area, and began operating July 1, 1992. Reno Air flies 140-seat McDonnell Douglas MD-80 jets, and currently serves Seattle, Portland, Ore., San Francisco, Ontario, Calif., Los Angeles and San Diego. Reno Air's operations have been designed to provide full-service, low-fare flights from its hometown to markets which have traditionally been under-served and over-priced. As disclosed in the company's initial registration statement, Reno Air's intent to serve the Midwest follows the niche carrier's philosophy of providing service to and from Reno/Tahoe to markets where service has been neglected or abandoned by major carriers.
 "The Clinton Administration is to be congratulated for sending the message that anti-competitive conduct will be checked by aggressive enforcement of the antitrust laws and regulations," said Erickson. "We're grateful for the prompt assistance of Senators Bryan and Reid who quickly realized anti-competitive actions by large airlines means higher fares for the traveling public and consumers will be subsidizing higher fares in the industry if major carriers are allowed to crush new entrants in the industry."
 -0- 3/25/93
 /CONTACT: Sue Putnam, public relations manager of Reno Air, 702-829-5774/
 (RENO)


CO: Reno Air Inc.; Northwest Airlines ST: Nevada IN: AIR SU:

SG-TM -- SF007 -- 9847 03/25/93 18:12 EST
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Publication:PR Newswire
Date:Mar 25, 1993
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