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Search Terms: United Airlines AND U.S. Airways AND Merger, House or Senate or Joint

Document 61 of 110.

June 15, 2000, Thursday

SECTION: PREPARED TESTIMONY

LENGTH: 959 words

HEADLINE: PREPARED STATEMENT OF REPRESENTATIVE SUE MYRICK

BEFORE THE HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

BODY:
Good morning. Chairman Shuster, Mr. Oberstar, and Members of the Committee, I want to thank you for the opportunity to testify before this distinguished Committee today regarding the proposed merger between United Airlines and US Airways.

Like many of my constituents in Charlotte, when I first heard the news of a possible merger between US Airways and United, I became concerned about what this could mean for Charlotte and its surrounding communities. I wondered about the fate of US Airways employees who live and work in the area. I wondered about the businesses in my region who use US Airways as a link to customers and clients around the nation and the world. I wondered because intuitively, the union of the nation's sixth largest carrier with the nation's largest airline, seems harmful to competition, and thus harmful to both my constituents and to all members of the traveling public. I have now had time to look closely into the terms of this merger and study its impact. I am now convinced that this merger is good for the employees of US Airways, good for Charlotte, good for the Carolinas and good for the nation.

For you to fully understand my conclusion, let me begin by describing in further detail the current role of US Airways in my community. This company is literally part of the economic and cultural fabric of the Carolinas. US Airways is the fourth largest private employer in Charlotte with about 8,500 employees and an additional 2,000 workers across the state. In North Carolina, US Airways pays annual salaries of over $700 million and has annual overall expenditures that are nearly double that amount.

As I'm sure you're aware, US Airways is a dominant carrier out of Charlotte with nearly 500 flights a day, moving 20 million passengers a year, in, out, and through the Charlotte Airport. What you may not know is that US Airways continues to show its commitment to the Charlotte area. In the last year alone, the Company has launched new service from Charlotte to London, Paris, and Frankfurt. In addition, US Airways recently opened a new airport club and invested $12.7 million to expand a crew training facility.

And yet, with all of this wonderful news, there are real and practical limits to the growth and expansion of US Airways in Charlotte. US Airways has basically a domestic north-south route structure with very limited service to the Midwest, the Rockies and the west coast. And, while the efforts by US Airways to expand to Europe through Charlotte are greatly appreciated, this is about as far as the Company is in a position to expand for the foreseeable future. And yet, we are all aware that in this global economy, the demands to remain competitive go past Europe -- to Asia, South America and beyond. This is one of the reasons that a merger of US Airways with United has excited my constituents.

United's expansive global system will offer Charlotte as an important, competitive alternative to our friends in Atlanta, giving my city and its businesses greater access to key domestic and global trade centers. United plans to offer non-stop or one-stop service from Charlotte to 249 domestic and international destinations, immediately adding non-stop service to Portland, Oregon and Austin and San Antonio, Texas. That's 75 more destinations than US Airways serves today and 186 more than are currently available on United.

Business and leisure travelers in my area will have unprecedented one- stop service to many destinations that are currently so difficult to reach. These include service to Australia, New Zealand, Asia, South America, many more cities in Europe, and multiple desinations in Hawaii. Charlotte will become a thriving, competitive southern hub with a global reach. Of course, by connecting Charlotte to a larger national and international network, the United-US Airways combination will mean more commerce, more jobs and more economic development. The result: substantial growth for the entire region.

But these benefits are not limited to Charlotte and the Carolinas. By combining these route structures, all travelers -- from upstate New Yorkers to downstate Carolinians -- will benefit from increased competition as a result of the new expanded domestic and international network. Many of my colleagues have expressed concern about rising airfares as a result of this merger. History has taught us that if you insert thriving competition, as would result from Charlotte's new international and domestic routes, fares will go down.

Upon hearing of this merger, one of my most urgent concerns was the fate of the 8,500 US Airways employees in Charlotte. These women and men work hard every day and, together with their families, they depend on the success of US Airways. Fortunately, as Jim Goodwin of United Airlines told this committee on Tuesday, he not only guarantees these jobs for the two years required under the agreement with US Airways, but has also said that no employee of US Airways will lose his or her job as a result of this merger. This statement speaks volumes about the intended growth and the good faith on which this merger is based.

In sum, the combination of United and US Airways provides significant benefits to the communities and customers served by both companies. By holding these hearings, and closely reviewing this agreement, this Committee is living up to its tradition of protecting the American consumer and fostering innovation and economic growth. Consumers are the beneficiaries of increased competition in the airline industry. Because the proposed merger between United and US Airways enhances the competitive aviation marketplace, I am encouraged about the future of the airline industry. Thank you.

END

LOAD-DATE: June 22, 2000

Document 61 of 110.


Search Terms: United Airlines AND U.S. Airways AND Merger, House or Senate or Joint
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