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SINGLE TRANSATLANTIC MARKET SHOULD BE U.S., EUROPE GOAL, URGES SIR COLIN MARSHALL

 SINGLE TRANSATLANTIC MARKET SHOULD BE U.S.,
 EUROPE GOAL, URGES SIR COLIN MARSHALL
 WASHINGTON, May 21 /PRNewswire/ -- The time has come for governments in the U.S. and Europe to strive to create a Single TransAtlantic Market, British Airways (NYSE: BAB) Deputy Chairman and Chief Executive, Sir Colin Marshall, urged today.
 In a speech to the annual general meeting of the Washington Airports Task Force, Sir Colin suggested that markets on each side of the Atlantic should be merged to give U.S. airlines full and free access to Europe and European airlines similar free entry into the U.S.
 "It has always seemed to me to be absurd that air transport, the very foundation of international trade and commerce, is denied the rights to overseas development and investment enjoyed as a matter of course by the world business community it serves," he said.
 "A Single TransAtlantic Market would not come about quickly, nor easily," he added. "There are many matters to be resolved and many applications of the heavy roller to be made to the playing field."
 But, he continued, the most important item of policy that the U.S. could bring to a Single TransAtlantic Market negotiating table would be agreement to change existing ownership rules.
 "It has always seemed ironic to me that such restrictions should exist in a country which was truly founded on inward investment," he added.
 Sir Colin said that this change, more than simple cabotage rights, would give greater confidence to foreign investors, retain multi-airline competition and serve to open up market access to European airlines who would seek to compete on their commercial mettle and merits with U.S. airlines. In terms of fair competition, the Chapter 11 financial concession in the U.S. is as regressive as state aid and subsidy in Europe and elsewhere.
 In Europe, he added, the process of liberalization still had to be completed. He warned that continuing state ownership of airlines in Europe will be an obstacle to free and fare competition. "European Transport Ministers must drive policies towards the ending of state ownership and control of airlines which continues to beckon into the industry the competitive warp of state aid and subsidy.
 "Europe's airline industry must be allowed to restructure naturally in a single market," he said.
 Until these changes have occurred, Sir Colin said, constraints will be placed on U.S. carriers while few benefits of equivalent value are offered in return.
 "This might frustrate ambitions in the short term, but if as I believe airline strategies for the future can only be fulfilled adequately by the creation of that Single TransAtlantic Market, we have to get the fundamentals right before we can move forward," he concluded.
 For further information or full text of speech, call contacts below.
 -0- 5/21/92
 /CONTACT: Sandy Gardiner, 718-397-4725, or John Lampl, 718-397-4729, both of British Airways/
 (BAB) CO: British Airways ST: District of Columbia IN: AIR SU:


SH -- NY024 -- 2686 05/21/92 09:45 EDT
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Publication:PR Newswire
Date:May 21, 1992
Words:500
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