SLATER WEIGHS IN ON AIRLINE MERGERS
U.S. Transportation Secretary Rodney E. Slater said the DOT would “thoroughly examine” any proposed U.S. airline mergers to ensure that the public interest is being met by new carriers.
Slater's comments came during this week's congressional hearings on the potential impacts of United Airlines' proposed $4.3 billion acquisition of US Airways. Members of Congress are concerned that a UAL-US Airways tie-up will spark a round of consolidation in the U.S. airline industry that would ultimately reduce competition and hurt consumers. A similar debate is raging in Washington with regard to the North American rail industry.
Slater said the DOT will examine the UAL-US Air merger as it would any other major transaction, “with the goal of protecting consumers and preserving competition in the airline industry around the country.”
The DOT will advise the Justice Department on the potential merger's effects. “In addition, before any transfer of international route authority in limited-entry markets can take place, it is the responsibility of DOT to determine whether the transfer is in the public interest. DOT is also charged with the responsibility to assure that the proposed new spin-off airline, DC Air, meets DOT’s economic fitness and safety standards before it begins operation,” Slater said.