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USAIR RESPONDS TO CLINTON REMARKS ON PROPOSED USAIR-BRITISH AIRWAYS ALLIANCE

 USAIR RESPONDS TO CLINTON REMARKS
 ON PROPOSED USAIR-BRITISH AIRWAYS ALLIANCE
 ARLINGTON, Va., Oct. 29 /PRNewswire/ -- USAir Chairman, President and CEO Seth E. Schofield today sent a letter to Gov. William Clinton in response to the governor's comments concerning the proposed alliance between USAir and British Airways. The text of the letter follows:
 Employees, shareholders and concerned customers of USAir have been besieging my office all morning to express their concern about your statements on the USAir-British Airways alliance last night during CNN's "Larry King Live" program.
 Unfortunately, your remarks indicate that you have not been given all the facts about what the proposed investment means for the preservation of jobs in the U.S. airline industry, the airplane manufacturing industry or about the state of competition in the United States-United Kingdom and European market.
 The USAir-British Airways alliance will preserve jobs in the U.S. airline industry while it increases domestic competition, keeps fares low and increases pressure for strong customer service. It will create new jobs and ensure job security for USAir's 47,000 employees.
 The vast numbers of lobbyists and public relations agencies who have been working for American, United and Delta to maintain those airlines' dominant market position and stop our alliance have neglected to put forth the true facts about their position in the international marketplace. You have no reason for despair on their behalf in that arena.
 As an example, the so-called "Big Three" airlines currently operate 644 weekly nonstop transatlantic departures, British Airways offers 177 and USAir 42. A recent Delta Air Lines ad boasts that the airline has more service to Europe than nine other airlines combined. By contrast our proposed alliance would not provide the British with a single new route authority.
 One of your comments concerned you apprehension about the loss of jobs in the airplane manufacturing industry. Contrary to the implication of your remarks, our proposed alliance provides a solid future for Boeing. USAir operates a fleet of 268 Boeing aircraft. We also have firm orders and options for 183 additional Boeing aircraft scheduled to be delivered through the year 2000. The financial infusion from the British Airways investment assures that those aircraft will be delivered.
 I would add that British Airways operates 174 American built Boeing aircraft and has firm orders for 81 additional Boeing aircraft as well as options for 70 more. Neither USAir nor British Airways has ordered any Airbus equipment.
 Also noteworthy is that British Airways was one of the first customers for the Boeing 777 and chose to purchase U.S.-manufactured General Electric engines rather than British-built Rolls Royce engines to power the new generation aircraft.
 However, United Airlines -- which has been actively lobbying against our alliance -- has just ordered 50 Airbus aircraft and has taken options on 50 more for delivery beginning next year. Delta and American also operate Airbus equipment.
 Notwithstanding your comments last night about investment in the airline industry, since 1987 USAir has invested in excess of $7 billion in the future of our company.
 I understand that you will be in Pittsburgh tomorrow -- the site of one of USAir's major hubs. I hope that while you are there you will have the opportunity to see the beautiful new airport which was opened on Oct. 1. It is a shining example of an investment by USAir along with the citizens of Pittsburgh and Pennsylvania. That terminal and our operations there are vibrant contradictions to the deteriorating state of service and schedule you described to Larry King last evening.
 I know that this is an intensely busy time for you but I would welcome the opportunity to brief you and your staff on the details of our alliance and the state of the industry. I will make myself available to discuss this vital industry's future with you whenever you have the opportunity to call me.
 I'm sure the 47,000 USAir employees would appreciate your attention to their future.
 -0- 10/29/92
 /CONTACT: Dave Shipley, USAir Public Relations, 703-418-5100/
 (U) CO: USAir ST: Virginia IN: AIR SU: CPN


TW -- DC015 -- 6651 10/29/92 14:04 EST
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Date:Oct 29, 1992
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