FOR IMMEDIATE RELEASE
Wednesday, June 14, 2000
Contact: Bill Mosley
Tel.: (202) 366-5571
DOT 113-00
Statement by U.S. Transportation Secretary Rodney E. Slater Regarding Airline Competition
As the last two days of congressional hearings have indicated, there is considerable interest in Congress and among the general public about the potential impact of mergers of major airlines such as the one recently announced by United Airlines and US Airways. The U.S. Department of Transportation (DOT) will thoroughly examine this proposed merger, as we would any major transaction, with the goal of protecting consumers and preserving competition in the airline industry around the country.
DOT will review the potential impact of the merger and submit our findings to the Justice Department, which has the lead role under its responsibility to enforce antitrust laws. In addition, before any transfer of international route authority in limited-entry markets can take place, it is the responsibility of DOT to determine whether the transfer is in the public interest. DOT is also charged with the responsibility to assure that the proposed new spin-off airline, DC Air, meets DOT’s economic fitness and safety standards before it begins operation. Lastly, we will assure that adequate arrangements are made to protect consumers’ rights.
During these hearings, DOT General Counsel Nancy McFadden reiterated our commitment to promoting airline competition to ensure that consumers throughout the United States continue to benefit from airline deregulation. This commitment to maintaining competition and protecting consumers will guide DOT’s review of this proposal and all other proposed major U.S. airline transactions.
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