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Federal Document Clearing House
Congressional Testimony
June 21, 2000, Wednesday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 960 words
HEADLINE:
TESTIMONY June 21, 2000 SUSAN M. COLLINS SENATOR SENATE
COMMERCE, SCIENCE AND TRANSPORTATION UNITED AIRLINES-U.S. AIRWAYS
MERGER
BODY:
June 21, 2000 UNITED STATES
SENATOR SUSAN M. COLLINS Statement Before the Senate Commerce, Science, and
Transportation Committee on the proposed merger between
United Air Lines and U.S. Airways. Mr. Chairman, first, let me
thank you for giving me a chance to testify this morning before the Commerce
Committee about an issue of considerable importance to the people of Maine. I
appreciate having an opportunity to share with the Committee some of my concerns
about the proposed merger between United Air Lines and
the U.S. Airways Group. In contemplating what this
merger means for the American people, one critical question is
whether rural areas will lose access to quality, affordable air service? The
importance of air service to rural areas simply cannot be overstated. A region's
ability to attract and retain jobs in the global marketplace is inextricably
linked to its transportation system. Unfortunately, many rural areas, including
eastern and northern Maine, have not fared will under airline deregulation.
Indeed, the number of cities served by more than two airlines has fallen 41
percent since 1989, and for many residents of smaller communities, the result of
deregulation has been poorer service, fewer choices, and higher costs. Add to
that the ongoing consolidation within the airline industry, and it is easy to
see why this huge merger raises a number of red flags. Mr.
Chairman, we must ensure that this proposed merger does not
result in rural communities facing the prospect of losing the only air service
they have. In Marine, we are heavily dependent upon U.S.
Airways for our transportation needs. It provides service to Portland,
Augusta, Rockland, Bangor, Bar Harbor, and Presque Isle. In every case, this
service is critically important to these municipalities and the surrounding
communities. And in some of these less populous areas, U.S.
Airways is the only air service carrier. For those communities, this
service is essential, not only for the residents, but also for the businesses
that provide the economic foundation of the region. If this
merger goes forward, will the result for Maine be less frequent
and more expensive air service with fewer choices of air carriers? While I
recognize that the airline industry is seeking to meet the demands of a global
economy, that should not be used as an excuse to abandon service to rural areas.
The airlines are supported by billions of taxpayer dollars that the federal
government has invested in our air transportation infrastructure. With this
investment comes a certain amount of responsibility that the airlines need to
assume. Each proposed merger should be reviewed on its own
merits. Those mergers that will enhance air service for all
Americans, including those in rural areas, should move forward. Those
mergers that fail to meet this threshold should be subjected to
a heightened standard of review.
LOAD-DATE: July 7,
2000, Friday 
