U.S. lawmaker expects serious airline merger review

WASHINGTON | Thu May 6, 2010 12:38pm EDT

WASHINGTON (Reuters) - The chairman of the House of Representatives Transportation Committee expects a "more serious" antitrust review of the merger proposal by UAL Corp's UAUA.O United Airlines and Continental Airlines CAL.N than was conducted for the last big combination of U.S. carriers.

Representative James Oberstar also told reporters on a conference call that U.S. airlines can compete without merging, and that big airlines, through consolidation and alliance networks, are seeking to "lock up" travel globally.

Oberstar believes there is a "different spirit" at the Justice Department on antitrust than during the more business-friendly Bush administration, which swiftly cleared the 2008 merger by Delta Air Lines (DAL.N) and Northwest Airlines.

"I expect this administration to be more serious and to use the authority of its antitrust powers," Oberstar said.

United and Continental proposed a merger on Monday that would create the world's largest airline, surpassing Delta.

Analysts and other experts expect the Justice Department to clear the United/Continental proposal but could require some divestitures to enhance competition in certain markets.

Oberstar also said efforts by airlines to permit overseas ownership of U.S. carriers is irrelevant with mergers of big airlines that participate in global alliances.

(Reporting by John Crawley; Editing by Tim Dobbyn)

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Comments (1)
The story is being written as we go about our daily lives. Nobody likes mergers, Ch-11’s, etc… This type of book has never been told. Should I listen to the complaints or any of the negative stuff from both sides? Should I take all that negative vibes to my friends, family or the guy that cut me off on the road? I say “NO”. TWA was a different situation but from a Techicians standpoint “I definitely do not want to work around a co-worker who hate my guts for reasons that were beyond my control (imagine finally meeting up your best friend from Aviation High, and he treats you like the plauge because the rest of his co-workers are) like whats happening at American Airlines. My “Three Wishes” are that: 1. The Teamsters on both sides make sure the Technicians are taken care of. 2. Our jobs are not sent overseas. 3. “The Management” not study what has happened at the other airlines and decide to make the worker’s lives (the average Joe’s & Jane’s) miserable. I’ve seen it time and time again… us Joe’s and Jane’s fighting each other while the management slips out the back door feeling great. I quit TWA back in 97 when the writing was on the wall. to make a long story short, it’s the workers that are fighting each other while the management sleeps well every night. That’s my spiel on things… the publisher (UAL & CAL) got us the title for the cover of our book (our new logo), now I want to see this story on the Wall Street Journal’s list or the N.Y. Times “Best Sellers” list. If the new management team can do whats right for the working people it will be great. If not… then it’s the same story written over and over again. I hope this will be something new instead of a “Legacy” (same old airline). Thank you.

May 06, 2010 2:41pm EDT  --  Report as abuse
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