Airline Merger Hearing Raises Broader Concerns On
Tuesday, the House
Regulatory Reform,
Commercial, and
Antitrust Law
Subcommittee held a
hearing on the pending
merger of American and
U.S. Airways. While much
of the conversation
focused on the impact of
the merger on prices and
consumers, one witness
told lawmakers that
after the merger,
foreign control and
ownership restrictions
and cabotage rules
should be relaxed—a
position that ALPA
vehemently opposes.
Dr. Clifford Winston of
the Brookings
Institution
testified, “If
policy makers are
concerned that the
proposed American–US
Airways merger may have
anti-competitive effects
. . . then an effective
way to address those
concerns, obtain the
efficiency gains, and
significantly benefit
travelers would be to
take steps to stimulate
additional competition
by creating a
deregulated global
airline industry. . . .
The final step to create
a highly competitive
global airline industry
would be for the United
States to allow foreign
airlines to serve U.S.
domestic markets.”
Winston continued,
“Clearly, competition
would be even more
intense in U.S. markets,
and travelers would
benefit from lower fares
and service improvements
if their choice of
carriers were expanded
to include discount
carriers like Ryanair
and global players like
Qantas and British
Airways.”
In defending the policy of expanded foreign access to U.S. markets, Winston
told the panel: “If you think that’s a strange policy, then think about autos.”
Efforts to weaken foreign control and ownership standards and cabotage
restrictions present a significant threat to the careers of ALPA pilots and the
future of the U.S. airline industry. The current rules are rooted in basic
security considerations and ensure that U.S. airline employees maintain a fair
share of international flying opportunities. ALPA opposes all efforts to weaken
or modify foreign ownership and cabotage rules.
Read more about ALPA’s position on this proposal. |