Congressman urges airline merger hiatus

WASHINGTON -- Airlines are more interested in "rushing to gobble each other up" than in customer service, according to Rep. Peter DeFazio (D-Ore.), co-author of a bill that would put a temporary halt to airline mergers.

"It's time to put the brakes on merger mania," said DeFazio, a member of the House Transportation Committee and an outspoken critic of the airlines.

Along with Rep. Louise Slaughter (D-N.Y.), DeFazio sponsored the Merger Moratorium Act, which would put a one-year moratorium on airline mergers.

"We are in the midst of a merger tsunami," said Slaughter, who contends airline deregulation has limited competition and driven up air fares to some cities.

"The new administration and the Congress need some time to understand the possible impact of these mergers that threaten to sweep away consumer choice in a tide of consolidation," Slaughter said. "The results will be higher fares and even shoddier service than air travelers receive now."

Slaughter also sent a letter to Transportation Secretary Norman Mineta asking him to call for a one-year moratorium on airline mergers.

Sen. Charles E. Schumer (D-N.Y.) floated a similar proposal during a hearing on airline mergers before the Senate antitrust subcommittee.

Several other members of Congress have voiced concerns over the proposed merger of United Airlines and US Airways and the possibility other airlines may follow their lead.

From Our Partners


From Our Partners

Destinations on a Plate: Culinary Tourism
Destinations on a Plate: Culinary Tourism
Register Now
TTC Tour Brands — How We Lead: What Tour Directors Know About Leadership
TTC Tour Brands — How We Lead: What Tour Directors Know About Leadership
Read More
What High Growth Advisors Do Differently
What High Growth Advisors Do Differently
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI