US airlines urge government to resist intervention

* Airlines urge gov't to resist re-regulation

* US holds state of industry meeting sought by labor

* DOT Sec LaHood says 'aviation marketplace' weak

By John Crawley

WASHINGTON, Nov 12 (Reuters) - The Obama administration
should resist any calls to re-regulate or otherwise intervene
in airline operations to ensure the industry's viability,
major U.S. carriers said on Thursday.

The comments came as Transportation Secretary Ray LaHood
chaired a conference sought by labor unions on the
competitiveness of an industry that continues to struggle
financially after restructuring earlier this decade.

"Our request is to simply let us run our businesses," US
Airways Group (LCC.N) Chief Executive Officer Doug Parker
said in a letter to LaHood.

Parker's sentiment was mirrored by other airline
officials concerned that labor and other groups stung by job
cuts, declining service quality, and poor financial
performance want government to exercise more muscle.

Some labor and congressional officials have raised the
possibility of re-regulation 30 years after the government
stepped away from that role.

"For those who think re-regulation is the answer, think
again -- because our financial situation was no better then,"
said Peter McDonald, chief administrative officer at United
Airlines, a unit of UAL Corp (UAUA.O).

In a letter inviting participants to the conference
attended by airline executives, unions, airport officials,
lobbyists and analysts, LaHood expressed no view on specific
remedies for the industry's ill health but said it was time
to discuss the matter.

"The continuing problems facing our airlines have led to
restructuring and downsizing, which have weakened both the
domestic and global aviation marketplace," LaHood said.

"Without a financially strong aviation industry, we will
be unable to compete in domestic and international commerce
and also could fall behind in addressing our infrastructure
needs," LaHood said. "We must begin this important
conversation."
(Reporting by John Crawley, editing by Matthew Lewis)