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Airline coalition opposes HR 831 legislation

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Air Transport Association of America and the Association of European Airlines, as part of a broad coalition of aviation industry stakeholders, urged (23-Mar-09) US political leaders to oppose legislation brought forward by Representative James Oberstar, Chairman of the House Committee on Transportation and Infrastructure. According to the coalition, the bill would "sunset" existing international airline alliances by withdrawing previously granted rights for carriers to participate in alliances. In addition, the coalition stated that terminating antitrust immunity "will have a harsh impact on airline employees and cause a ripple effect across the travel and tourism industry."

The Air Transport Association of America (ATA), the industry trade
organization for the leading U.S. airlines, as part of a broad
coalition of aviation industry stakeholders, urged the administration
to oppose H.R. 831, which would sunset existing international airline
alliances. The coalition includes U.S. airlines as represented by ATA,
their European partners as represented by the Association of European
Airlines, as well as other aviation and travel organizations.

International alliances are a vital element of a global economy and
produce enormous benefits for travelers, businesses, shippers and
others. The U.S. Department of Transportation (DoT) has historically
approved international airline alliances because of the substantial
benefits that they provide both to passengers, and to European and
U.S. airlines. H.R. 831 could destroy important service and public
benefits such as competitive fares and new routes by withdrawing
previously granted rights for carriers to participate in alliances.

In addition, arbitrarily terminating antitrust immunity will have a
harsh impact on airline employees and cause a ripple effect across the
travel and tourism industry, at a time when U.S. unemployment is
escalating rapidly. Based on data from ATA member airlines, this
legislation could cost as many as 15,000 US airline jobs alone, not
to mention the indirect effect on employment at other companies both
in the United States and abroad. US airlines have already cut 28,000
jobs last year and announced thousands more cuts for 2009. This
legislation would unnecessarily add to that total.