FOR IMMEDIATE RELEASE:  November 22, 1988

            FTC SAYS AIRLINE MERGERS MUST BE REPORTED
                   TO IT AND DEPT. OF JUSTICE

     The Federal Trade Commission announced that all airline
mergers or acquisitions scheduled to be consummated on or after
January 1, 1989, must be reported to the FTC and the Department
of Justice for antitrust review.  The Dept. of Justice concurs in
this formal interpretation of the premerger notification rules
under the Hart-Scott-Rodino Act.

     The Hart-Scott-Rodino Act requires companies or individuals
planning certain mergers or acquisitions to notify the FTC and
DOJ, and observe specified waiting periods.  This allows the
agencies to review the proposed transaction for potential anti-
trust problems.

     The Department of Transportation currently has antitrust
authority over airline mergers, but under the Civil Aeronautics
Board Sunset Act, after December 31, 1988, DOT will no longer
have authority over airline mergers.

     Under the interpretation announced today, any airline merger
scheduled to be consummated on or after January 1, 1989, must be
subject to HSR review, even if the merger has already been re-
viewed and approved by DOT, or if it is currently under review.

     According to the FTC staff, this interpretation provides
special procedures to facilitate antitrust review during the
transitional period in order to minimize disruption to business
transactions. 

     A notice concerning the interpretation is scheduled to
appear in the Federal Register on November 23.  Copies of the
notice, including the interpretation, are available from the
FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania
Ave. N.W. Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502.

                             # # # 

MEDIA CONTACT:      Susan Ticknor, Office of Public Affairs, 
                    202-326-2181

STAFF CONTACT:      John Sipple, Bureau of Competition,
                    202-326-3100
(Air)