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Time - Man of the Year
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Time_Man_of_the_Year_Compact_Publishing_3YX-Disc-1_Compact_Publishing_1993.iso
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1993-04-08
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THE WEEK, Page 20BUSINESSWhose Airlines Are They, Anyway?
Air Canada rescues Continental, as U.S. carriers protest a British
plan
No other major U.S. airline has successfully emerged from
bankruptcy proceedings. But thanks to Air Canada, battered and
bruised Continental is about to do the unthinkable -- complete
a bankruptcy restructuring for the second time in 10 years. The
two carriers have struck a deal that will give Air Canada part
ownership and access to Continental's American routes, in
exchange for a much needed $450 million infusion of cash.
The deal is the latest in a flurry of international
partnerships being formed as the world's airlines shoot it out
for passengers. By far the most controversial is USAir's plan
to sell a 44% stake to British Airways for $750 million. The
transatlantic combo would rank as one of the three biggest
airlines in the world, linking 339 destinations in 71 countries.
Most alarming to U.S. carriers, the arrangement would give
British Airways, one of the world's strongest carriers,
unlimited access to American markets. President-elect Bill
Clinton and Ross Perot joined the chorus of alarm during the
campaign. Said American Airlines chairman Robert Crandall: "What
will happen is, the good jobs will go to London and the baggage
handlers will stay here."