For Release: Wednesday, June 16, 2010
Contact: David Gillies: 202-225-5661
WASHINGTON – The House Aviation Subcommittee today held a hearing on the proposed merger between United Air Lines and Continental Airlines and its potential effects for consumers and the aviation industry. The hearing comes after last month’s announcement by United and Continental that they would merge to form what would be by most measures the world’s largest air carrier, surpassing Delta Air Lines.
While Congress does not have a formal role in the merger approval process, which is carried out by both the Department of Justice and the Department of Transportation, the hearing provided an opportunity for the airlines, labor groups, analysts, members of Congress and others to discuss the merger. The Aviation Subcommittee held a similar hearing on the merger of Delta and Northwest Airlines in 2008.
Subcommittee members heard testimony from Mr. Glenn F. Tilton, Chairman, President and CEO of United; Mr. Jeffery Smisek, Chairman, President and CEO of Continental; Captain Wendy Morse, Chairman of the Air Line Pilots Association’s (ALPA) United Master Executive Council; Captain Jay Pierce, Chairman of ALPA’s Continental Master Executive Council; Ms. Patricia Friend, International President of the Association of Flight Attendants-CWA; Mr. Robert Roach, Jr., General Vice President of Transportation for the International Association of Machinists and Aerospace Workers; Mr. Albert A. Foer, President of the American Antitrust Institute; Mr. Hubert Horan, aviation analyst and consultant; Mr. William McGee, travel and aviation consultant for the Consumers Union; and Mr. David Strine, portfolio manager at Impala Asset Management, LLC.
During the hearing, Aviation Subcommittee Chairman Jerry F. Costello (D-IL) expressed concerns regarding this merger’s possible effect on ticket prices for passengers; its impact on pilots, flight attendants, mechanics and other employees of both airlines; the number of employees expected to lose their jobs or see reduced wages and benefits; and the future of existing union contracts.
“This hearing is an important opportunity to better understand all the ramifications of this proposal,” said Costello. “Attention must be paid to how this merger will impact consumers and the airline workers who have already made tremendous sacrifices. We all have a shared interest in maintaining a safe, reliable, competitive and profitable air transportation system, and we must ask critical questions on the long-term implications of continued mergers for the future of the industry.”
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