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Subcommittee considers financial regulation of aviation industry if US carriers merge

17-Jun-2010 9:47 AM

US' Transportation and Infrastructure Subcommittee on Aviation held a hearing on 16-Jun-2010 over the pending merger between Continental Airlines and United Airlines with representatives James Oberstar and Jerry Costello expressing concern over the impact the proposed deal could have on consumers and airline workers (AP, 16-Jun-2010). Mr Oberstar and Mr Costello stated they would attempt to restore the financial regulation of the airline industry if the Justice Department approves the proposed merger. [more - Transportation Committee] [more - International Association of Machinists and Aerospace Workers] [more - Continental Airlines] [more - Association of Flight Attendants-CWA]

Transportation and Infrastructure Subcommittee on Aviation: "A real danger exists that mega-carriers enjoying such antitrust privileges will engage in cartel pricing; consumers traveling across the North Atlantic will be at their mercy. This merger will have consequences for employees, as well. United and Continental employ roughly 89,000 people in hubs and at small airports across the country. We must ensure that this merger does not come at the expense of those employees or jeopardize any jobs during these delicate economic times." James L. Oberstar, Chairman of the Committee on Transportation and Infrastructure.