FOR IMMEDIATE RELEASE                                          AT
MONDAY, APRIL 28, 1997                             (202) 616-2771
                                               TDD (202) 514-1888

   JUSTICE DEPARTMENT ASKS EUROPEAN COMMUNITIES TO INVESTIGATE
 POSSIBLE ANTICOMPETITIVE CONDUCT AFFECTING U.S AIRLINES' COMPUTER 
                      RESERVATION SYSTEMS


 First Formal Investigation Request by Department to European 
                      Communities

     
     WASHINGTON, D.C. -- The Department of Justice disclosed
today that it made a formal request to the European Communities'
competition authorities to investigate possible anticompetitive
conduct by European airlines that may be preventing U.S.-based
airline computer reservation systems from competing effectively
in certain European countries.  The request, which was made in
January of this year, was not disclosed earlier in order to
protect the integrity of the investigation.  

     This is the first formal request--also known as a "positive
comity" request--made under a 1991 agreement to enhance
cooperation between the U.S. and the European Communities in
enforcing competition laws, the Department said.

     "This request demonstrates our commitment to cooperative
antitrust enforcement with our European colleagues," said Joel I.
Klein, Acting Assistant Attorney General in charge of the
Department's Antitrust Division.  "This kind of cooperation is
critical in today's increasingly globalized economy."

     Computer reservations systems are used by travel agents to
schedule and book reservations on airlines, trains, and other
carriers.

     The Department's Antitrust Division had been investigating
whether the three large European airlines that own Amadeus, the
dominant computer reservation system in Europe, maintained that
dominance by withholding air fare information and functionality
from U.S. computer reservation systems that do business in
Europe.  When it made its positive comity request, the Antitrust
Division sent to the European Commission's Directorate-General
for Competition materials that set forth the competitive concerns
and summarized the results of the Division's preliminary
investigation. 

     Amadeus is owned by Lufthansa, Air France, and Iberia
Airlines.  The Antitrust Division had received complaints from
Sabre--a computer reservation system largely owned by American
Airlines--that these airlines did not give Sabre many air fares
on a timely basis, refused to provide it with certain promotional
or negotiated fares, and denied Sabre the ability to perform
certain ticketing functions, although they provided these fares
and functions to Amadeus.  Accurate and up-to-date air fare data
and functionality, particularly from airlines that carry a large
share of traffic, are critical for a computer reservation system
to compete effectively.

     "We believe there are indications that exclusionary conduct
may be preventing U.S. companies from vigorously competing in
computer reservation system markets in Europe," said Klein.  "The
European Commission is in the best position to investigate this
conduct because it occurred in its home territory and consumers
there are the ones who are principally harmed if competition has
been diminished.  At the same time, we retain a strong interest
in this matter because U.S. companies may have been blocked from
becoming effective competitors and the exclusionary conduct might
have adverse effects on U.S. markets as well." 

     The 1991 agreement between the U.S. and the European
Communities provides that positive comity may be exercised by
competition authorities in both jurisdictions.  Under a positive
comity referral, the antitrust agency of one jurisdiction makes a
preliminary determination that there are reasonable grounds to
investigate and then refers the matter to the competition
authority in whose jurisdiction the anticompetitive conduct may
be occurring.  That competition authority conducts the
investigation while keeping the referring authority informed of
developments.

     Although the Antitrust Division referred to the European
Community its investigation of anticompetitive conduct in Europe,
it will continue to investigate the possibility that similar
conduct may be preventing U.S.-based computer reservation systems
from competing effectively in a number of countries in South
America.   
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