• ITVI.USA
    15,379.620
    -113.610
    -0.7%
  • OTLT.USA
    2.786
    -0.021
    -0.7%
  • OTRI.USA
    21.500
    -0.060
    -0.3%
  • OTVI.USA
    15,349.750
    -127.770
    -0.8%
  • TSTOPVRPM.ATLPHL
    3.300
    -0.240
    -6.8%
  • TSTOPVRPM.CHIATL
    2.950
    -0.020
    -0.7%
  • TSTOPVRPM.DALLAX
    1.440
    0.000
    0%
  • TSTOPVRPM.LAXDAL
    3.310
    0.060
    1.8%
  • TSTOPVRPM.PHLCHI
    2.150
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    3.950
    -0.100
    -2.5%
  • WAIT.USA
    126.000
    1.000
    0.8%
  • ITVI.USA
    15,379.620
    -113.610
    -0.7%
  • OTLT.USA
    2.786
    -0.021
    -0.7%
  • OTRI.USA
    21.500
    -0.060
    -0.3%
  • OTVI.USA
    15,349.750
    -127.770
    -0.8%
  • TSTOPVRPM.ATLPHL
    3.300
    -0.240
    -6.8%
  • TSTOPVRPM.CHIATL
    2.950
    -0.020
    -0.7%
  • TSTOPVRPM.DALLAX
    1.440
    0.000
    0%
  • TSTOPVRPM.LAXDAL
    3.310
    0.060
    1.8%
  • TSTOPVRPM.PHLCHI
    2.150
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    3.950
    -0.100
    -2.5%
  • WAIT.USA
    126.000
    1.000
    0.8%
American Shipper

JUSTICE URGED NOT TO COMPROMISE OVER UNITED-U.S. AIRWAYS MERGER

JUSTICE URGED NOT TO COMPROMISE OVER UNITED-U.S. AIRWAYS MERGER

   Rep. James Oberstar, the ranking Democrat on the House Transportation and Infrastructure Committee, urged the U.S. Department of Justice to refrain from taking a compromise approach to the proposed United Airlines-U.S. Airways merger.

   Oberstar referred to speculation that Justice’s antitrust division is considering a compromise under which the department would not object to the merger if the proposal were changed to require divestitures of additional assets and/or to impose limitations on post merger operations. “I strongly urge you not to take this approach,” Oberstar said in a letter sent to acting assistant attorney general Doug Melamed.

   Such a compromise would not remove a major problem, namely, that such a large merger would trigger other airline mergers in the United States, and reduce the airline industry to three mega-carriers with worldwide networks, Oberstar said.

   American Airlines and Delta would be threatened to such an extent that they would feel impelled to expand their own operations under a merger, Oberstar said.

   If U.S. Airways' network were added to United’s the post-merger carrier would have 65 percent revenue than American, Oberstar said. “I would note that United is already the nation’s largest carrier with systems revenues of almost $2 billion a year more than American,” Oberstar said.

   Oberstar urged the Justice Department to follow the example set by the U.S. Surface Transportation Board when it declared a moratorium on additional rail road mergers so that the agency could form a new policy that will take into consideration the downstream effects mergers would have on the U.S. rail industry.

We are glad you’re enjoying the content

Sign up for a free FreightWaves account today for unlimited access to all of our latest content

By signing in for the first time, I give consent for FreightWaves to send me event updates and news. I can unsubscribe from these emails at any time. For more information please see our Privacy Policy.