SEN. SCHUMER URGES NINE-MONTH MORATORIUM ON AIRLINE MERGERS
Sen. Charles E. Schumer, D-N.Y. urged the U.S. Department of Justice to impose a nine-month moratorium on airline mergers.
Schumer also called on the Justice Department to study how airline industry consolidations would affect airline competition.
The Justice Department was also asked to review the way it evaluates airline mergers to make sure it considers the effects of consolidation in the industry over the last 10 years.
Schumer also called for the moratorium during a Senate Judiciary Committee hearing.
'However, Schumer voiced his support for American Airlines proposed acquisition of TWA. This transaction should not be included in the moratorium because of TWA’s looming bankruptcy threatens to force the airline out of business, he said.
At the same hearing, US Airways chairman Stephen M. Wolf urged support for the proposed United Airlines-US Airways merger. The merger will save 45,000 US Airways’ jobs and “competition in the industry will be enhanced,” Wolf told the Senate Judiciary Committee.
