In Latest Reversal, U.S. Lets United Keep Tokyo Route

WASHINGTON —  In a surprise move, the Department of Transportation said Friday that United Airlines will be allowed to retain the valuable route between Seattle and Tokyo.

The department reversed its own decision of September, when it had granted the route to Continental Airlines in compliance with a court order.

Friday’s action becomes final in 60 days, unless it is overruled by President Reagan. The President could take such action on national security grounds or other vital issues. Also, Continental could take the case to court if its final appeal within the Administration fails.

The decision is a major victory for United, which has been flying the route since 1983. The current competition for control began in 1986 when United bought the Pacific routes of Pan American World Airways.

At that time, the department began considering whether it should take the route away from United to preserve competition in the valuable Pacific market. Continental and American Airlines were United’s rivals in the competition.

The Transportation Department said United will carry more people and give them better connections than would Continental or American. Also, it said, United offers connecting flights from Tokyo to seven Asian cities, giving passengers “the enormous convenience” of direct connections on the same airline “at a busy foreign airport where interline connections carry all the risks of uncoordinated connections, misplaced baggage and passenger confusion.”

United was jubilant. “We are absolutely delighted with this decision,” Stephen M. Wolf, chairman and president of UAL Corp. and United Airlines, said.

American Airlines and Continental Airlines expressed disappointment, but only Continental said it intends to appeal the decision.

“We think it’s outrageous and clearly a violation of law,” said spokesman David Messing at Continental headquarters in Houston.

Al Becker, Messing’s counterpart at American, said, “We are extremely disappointed” by the decision but he added that it is “unlikely” that the Dallas-based company will appeal.

Direct service is available to Tokyo from a number of U.S. cities, including Los Angeles and San Francisco. However, the Seattle-to-Tokyo route provides the shortest flight between the mainland of the United States and Japan. The Seattle route is also served by Northwest Airlines and Japan Airlines.

Friday’s ruling is the latest step in a tangle of decisions. An administrative law judge first awarded the route to Continental, only to be overruled by a Transportation Department official, who picked United. Then the case went to a new administrative law judge, who picked United, a decision again overruled within the department, this time in favor of American. Continental sued the department and won in August, with a federal court ordering that Continental get the route.

The Transportation department then agreed to review the entire case and issued its ruling Friday, making United the winner.

Times staff writer Bruce Keppel in Los Angeles contributed to this story.