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Federal Document Clearing House
Congressional Testimony
June 14, 2000, Wednesday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 1120 words
HEADLINE:
TESTIMONY June 14, 2000 JESSE HELMS SENATOR SENATE JUDICIARY
ANTITRUST, BUSINESS RIGHTS AND COMPETITION AIRLINE MERGER
BODY:
STATEMENT OF SENATOR JESSE HELMS US
AIRWAYS - UNITED AIRLINES MERGER United States Senate Judiciary
Subcommittee on Antitrust, Business Rights, and Competition JUNE 14, 2000
Chairman DeWine, Senator Kohl and other distinguished members of this
sub-committee, thank you for including me to participate in your hearing this
morning regarding the proposed merger of US Airways and United
Airlines. It is good that you will examine the impacts that this
proposed merger may have within the airline industry, business
community and more importantly on the traveling public. I believe that the
impact will be a positive one for all concerned. It is important that this
proposal be given careful study by the Department of Justice and the Department
of Transportation. This has been done regarding many previous
mergers. What I believe the two agencies will find is that,
contrary to some media speculation that harm to consumers and competition may
result, this merger will be exceedingly beneficial to the
traveling public and the US economy. Mr. Chairman, US Airways
is the largest carrier serving North Carolina, and one of the top 20 employers
in my state. After examining the details made available to me, I have concluded
that this will be very beneficial for the citizens of North Carolina and to the
competitive marketplace in general. US Airways serves
Asheville, Fayetteville, Greensboro, Wilmington, Winston-Salem, and Raleigh -
Durham. Of course its principle operation is its hub in Charlotte (the second
largest banking center in the United States, by the way) offering nearly 500
daily flights. US Airways employs some 10,000 people in North
Carolina with an annual payroll of nearly $700 million and with expenditures of
more than $1 billion each year. As I stated at the outset, I consider this
proposed merger to be a positive development for North Carolina
but, obviously the principle concern in a merger of this size
is the possible impact on jobs. I m gratified that all 40,000 US
Airways employees will be offered comparable positions in the new
airline. Additionally, this merger will help North Carolina s
burgeoning economy grow by providing more flights to more domestic and worldwide
destinations. Having a hub in Charlotte has indeed helped the Queen City s
growth and the linkage of Charlotte to United s global network will positively
impact the Carolinas and the rest of the Southeast. US Airways
has a domestic North - South service structure with some routes to the Midwest,
Rocky Mountains, and West Coast. While I admire the efforts of US
Airways to expand to Europe from Charlotte, it is my understanding that
US Airways will in the foreseeable future not see further
international expansion. Links with United s system will give Charlotte and the
Carolinas access to the economic centers on the West Coast, Europe, and Asia.
Upon completion of the merger United has plans, I m told, to
offer non-stop or one-stop service from Charlotte to 249 domestic and
international destinations, immediately adding non-stop service to other high
technology centers in Seattle and San Francisco. This will amount to 75
additional destinations over US Airways service today - and 186
more than are currently available on United. Mr. Chairman, the merger of
US Airways and United Airlines will bring substantial economic benefits
to the communities throughout the Carolinas. Thank you again, Mr. Chairman, and
members of this distinguished committee.
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June 21, 2000, Wednesday 
