* Airlines urge gov't to resist re-regulation
* US holds state of industry meeting sought by labor
* DOT Sec LaHood says 'aviation marketplace' weak
(Adds plans for gov't committee)
By John Crawley
WASHINGTON, Nov 12 (Reuters) - The Obama administration
should resist any calls to re-regulate or otherwise intervene
in airline operations in an attempt 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.
LaHood said the agency would establish an advisory
committee to study the matter and formulate recommendations.
"We're going to look at these issues and figure them out.
We're going to have a plan for the future of aviation," LaHood
told reporters after the conference, which was closed to the
media.
Airlines have struggled this year with weak revenues due to
soft demand and expect billions in losses as a group for 2009.
Consumer complaints about cost cutting, deteriorating
service, flight delays and a series of high profile maintenance
lapses have prompted scrutiny from policymakers and Congress.
Some members have questioned whether the airline business
model is broken and unions, which have lost tens of thousands
of jobs since 2001, are pressing for change.
LaHood requested input from airline executives, labor and
analysts about topics the transportation panel should review.
The conference covered financial, safety, labor and operational
issues, participants said afterward.
Major airlines are nervous about congressional or
administration intervention in their operations and say their
weak financial state should not be a pretext for federal
action.
"Our request is to simply let us run our businesses," US
Airways Group Inc (LCC.N) Chief Executive Officer Doug Parker
said in a letter to LaHood.
Parker's sentiment was mirrored by other airline officials,
who said a return to regulation of airlines was a bad idea.
"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).
Unions, which have the ear of the current administration
after years of contentious relations with the Bush
administration, suggested government should consider raising
the bar for entry.
During three decades of deregulation, many low cost
carriers launched service only to fail during a downturn. These
low fare airlines have put enormous pressure on larger
carriers, which are heavily unionized.
LaHood reacted coolly to the idea.
"I have never heard one word spoken by the administration
about re-regulation," he said.
Airline chief executives were invited to the conference,
but major carriers sent other officials.
(Reporting by John Crawley; editing by Matthew Lewis and
Andre Grenon)
