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UNITED'S CHAIRMAN URGES CONGRESS TO ADDRESS INDUSTRY'S PROBLEMS

 WASHINGTON, Feb. 17 /PRNewswire/ -- United Airlines Chairman and Chief Executive Officer Stephen M. Wolf today presented United's views on the state of the U.S. air transportation industry and the critical issues that must be addressed if the nation's air carriers are to reverse their steep financial losses and join other industries on the road to economic recovery.
 Testifying before the Aviation Subcommittee of the House Public Works and Transportation Committee, United's chairman urged Congress to consider:
 -- developing an international aviation policy that seeks enhanced access to international markets for U.S. carriers in return for such opportunities being made available to foreign carriers;
 -- assessing the broader impact of the current application of federal bankruptcy laws on the entire airline industry; and,
 -- investing the Aviation Trust Fund surplus to finance needed infrastructure improvements that will increase the efficiency of the air transportation system.
 On the issue of international access for U.S. carriers, Wolf suggested that, "Congress should, in conjunction with the new administration, develop an international aviation policy under which access to international markets for U.S. carriers was the price for foreign investment in the U.S. market, the world's largest single air transportation market. Consistent with national defense considerations, foreign investment should be encouraged to any degree of ownership, so long as opportunities of comparable economic value are open to U.S. carriers to and beyond the homeland of the acquiring entity."
 Wolf noted that substantial growth in aviation-related domestic employment requires expansion of U.S. carrier services to foreign markets. For that reason, Wolf contended that the guiding principle of foreign investment must be mutual expansion of trade opportunities. However, "there is a growing refusal of countries around the globe to expose their carriers to the reality of U.S. carrier competitiveness. The trend toward protectionism is accelerating," Wolf warned.
 Citing excess capacity as a primary cause of the industry crisis the past few years, Wolf said the situation requires close analysis.
 "Clearly, what we have here are conflicting public interests: on the one hand, preserving the opportunity for companies, including air carriers, to restore themselves to economic solvency, and on the other hand, the interest in preserving a healthy and competitive air transportation industry," Wolf said. "Determining just how these crucial public interests should be balanced, and what changes in either the bankruptcy law or the Federal Aviation Act could be made to achieve that balance, is a task that requires in-depth consideration by the brightest minds we can find."
 Wolf also called for the Aviation Trust Fund, set up to finance improvements in the aviation infrastructure and the air traffic control system, to be used for the purposes intended.
 The substantial revenues that have been allowed to build up should be used on needed infrastructure improvements that will improve system efficiency and reduce costs.
 -0- 2/17/93
 /CONTACT: Joe Hopkins, 708-952-5770, or nights, 708-952-4088; or Investor Contact: Pamela Hanlon, 708-952-7501, both of United Airlines/
 (UAL)


CO: UAL Corp. ST: Illinois IN: AIR SU:

PS -- NY062 -- 7297 02/17/93 11:45 EST
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Date:Feb 17, 1993
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