U.S. airlines move toward `alliances'; one effort falters
     DALLAS -- April 24, 1998 10:53 a.m. ET -- While four of the
 nation's top airlines are getting downright cozy, a proposed alli-
 ance between two others has hit turbulence.
     United Airlines, the biggest U.S. carrier, said today it has
 suspended talks with No. 3 Delta Air Lines about a pact that would
 include sharing frequent-flier deals and allowing passengers to
 transfer easily between airlines.
     The two sides would not disclose why talks were halted. United
 said they may not resume.
     "We were very close. We just simply don't have an agreement,"
 Delta spokesman Bill Berry said. The two airlines had planned a news
 conference to announce the deal today in New York.
     A source familiar with the negotiations, speaking on condition
 of anonymity, said pilots' union members balked at the deal. Air Line
 Pilots Association leaders at a meeting in Portland, Ore., weren't
 immediately available for comment.
     The breakdown came after American Airlines and US Airways, the
 second- and sixth-largest carriers, announced a similar alliance on
 Thursday. Northwest Airlines has already announced it would buy a
 $519 million stake in Continental Airlines in a deal that would link
 the No. 4 and 5 airlines' route systems.
     The alliances are important cost-cutting tools for airlines con-
 cerned about filling empty seats, said analyst Brian Harris of Lehman
 Brothers.
     "It has minimal impact on fares. ... I don't think consumers
 should be concerned about these alliances," Harris said.
     In the American-US Airways alliance, the companies said they will
 let passengers use frequent-flier miles on either airline and may
 eventually code-share their flights, meaning they will allow transfers
 between their planes.
     American has also formed alliances with Japan Airlines and British
 Airways, but those deals are pending.
     Airline analysts have speculated that the nation's largest carri-
 ers would form alliances to strengthen their position in the global
 marketplace.
     "Marketing and code-sharing alliances and frequent-flier programs
 have been surrogates for classical mergers," said Julius Maldutis, an
 airline analyst with Salomon Brothers.
     "I think this is the final consolidation phase of the airline
 industry," he said. "Obviously the smaller carriers have objected to
 the fact that they've been abused by the larger companies. This will
 further strengthen their arguments."
     Because certain types of code sharing are subject to provisions
 in the labor contracts at American and US Airways, the issue will be
 presented to pilots at both airlines.
     Al Comeaux, a spokesman for American Airline's parent company AMR
 Corp., said the proposal is expected to be made soon.
     Meanwhile, code-sharing on the regional carriers of both compan-
 ies, American Eagle and US Airways Express, is expected on some
 flights soon. The frequent-flier program changes should be added by
 late summer.
     The two airlines also have agreed to allow reciprocal access to
 American's Admirals Clubs and the US Airways Clubs.
     Arlington, Va.-based US Airways has a strong presence throughout
 the East, while American, based in Fort Worth, Texas, has a wide
 route structure.
     "This alliance is a good match for American and US Airways cus-
 tomers, because the two airlines' networks complement each other
 very well," said American chief executive and chairman Bob Crandall.
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            Pilot dies as delivery plane crashes in Ohio
     COLUMBUS, Ohio - April 24, 1998 2:37 p.m. EDT -- A delivery ser-
 vice plane crashed and burned as the pilot tried to land at Port
 Columbus International Airport. The pilot, a new employee of the
 company, died early Friday at a hospital.
     Mark Mulgrew, 32, of San Antonio, was taken to Ohio State Uni-
 versity Medical Center with second- and third-degree burns to his
 head, face, arms, chest and legs.
     He was in radio contact with the airport tower but apparently
 did not indicate any problems before the plane he was trying to land
 crashed and burned at the end of a runway shortly before 11:30 p.m.
 Thursday. No one else was on board.
     Mulgrew was piloting a twin-engine Beechcraft Baron for AirNet
 Systems, a small-package, air-delivery service based at Port
 Columbus. He was completing a flight from Indianapolis.
     Mulgrew had started flying for the company this week, AirNet
 executive Eric Roy said Friday. He said Mulgrew had completed
 AirNet's training program and had extensive flying experience.
     AirNet officials and the Federal Aviation Administration were
 investigating the crash.
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    Texas man accused of stealing more than 500 pieces of luggage
     DALLAS - April 24, 1998 10:31 p.m. EDT -- A man was charged with
 stealing $1 million worth of luggage from the baggage conveyors at
 Dallas-Fort Worth Airport and selling the bags and their contents at
 his flea market stand.
     "As far as we know, this is the largest such recovery of luggage
 at any major airport, at least in the U.S.," Airport Police Chief Tom
 Shehan said Thursday.
     James Clarence Ringley, 46, of Arlington, was charged with theft.
     Police said he stole more than 500 pieces of luggage simply by
 plucking them from baggage conveyers.
     The stolen luggage was seized from Ringley's home, a storage shed
 and his flea market stall. Expensive golf clubs and electronic items
 were also found.
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