U.S. OKAYS USAIR &lt;U> PACIFIC SOUTHWEST PURCHASE

  The U.S. Department of Transportation
  said it gave final approval to USAir Group's proposed 400 mln
  dlr acquisition of Pacific Southwest Airlines.
      The department said the acquisition is not likely to
  substantially lessen competition and would not harm the public
  interest.
      The department had given its tentative approval of the
  acquisition in January.
      The department said it decided to make final its tentative
  decision after reviewing the public response to it.
      The agency said it rejected an assertion by Air North
  America, which currently is not operating but plans to start
  service to some of the cities served by USAIR and PSA, that the
  acquisition would lessen chances of new entry into those
  markets by other carriers.
      The agency said Air North America provided no support for
  its claim that the transaction would give the two carriers
  monopoly power in some markets.
      The transportation agency said Air North America also
  failed to show that there are barriers that would prevent new
  entrants into those markets or prevent other carriers from
  increasing their service.
      The agency noted in its final order that PSA operates
  exclusively in the West and Mexico while USAir serves the West
  for the most part with some long-haul flights from the East and
  Midwest.
      The two carriers serve five point in common; Los Angeles,
  San Diego, San Francico, Phoenix and Tucsonm, the agency said.
       The transportation department also rejected a request by
  the Teamsters Union, which represents some PSA workers, to
  require protections for PSA workers.
      The agency noted that USAir has promised to give protective
  benefits to PSA workers and that unions representing PSA
  workers have collective bargaining agreements that provide such
  protections.
  

