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Continental Seeks Delay in NY-Buenos Aires Service

Continental Airlines Inc. is seeking to delay the start of its nonstop New York-Buenos Aires service as Argentina's economy is a "disaster” and the route would incur losses, the airline has told U.S. regulators.

"Economic conditions affecting Argentina would result in unacceptable financial losses for Continental if it operated daily nonstop flights on the New York/Newark-Buenos Aires route,” Continental said in its June 6petition,"particularly in light of the downturn in the U.S. economy."

Continental was awarded permission for seven weekly flights in December last year as part of a bilateral pact between the United States and Argentina. The airline originally planned to begin service in December this year.

Now the airline wants the U.S. Department of Transportation (DOT) to allow it up to a one-year delay and an exemption from automatic expiry of its route authority.

LAPA, Argentina's second-largest airline, has filed for financial reorganization, while heavily indebted Aerolineas Argentina has suspended flights to seven international destinations.

It offered to let another carrier use its seven weekly frequencies until it is ready to use them and said it wanted to code share with another airline to meet the current reduced demand.

(Eastday.com.cn 06/13/2001)

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