Search Terms: United Airlines AND U.S. Airways AND Merger, House or Senate or Joint
Document 81 of 110.
Copyright 2000
Federal News Service,
Inc.
Federal News Service
June
14, 2000, Wednesday
SECTION:
PREPARED TESTIMONY
LENGTH:
309 words
HEADLINE:
PREPARED STATEMENT OF SENATOR PAUL WELLSTONE
BEFORE THE
SENATE
JUDICIARY COMMITTEE SUBCOMMITTEE ON ANTITRUST, BUSINESS RIGHTS, AND COMPETITION
SUBJECT - THE
MERGER OF UNITED AIRLINES AND US AIRWAYS
BODY:
Senator DeWine, Senator Kohl, and members of the Subcommittee, I very much appreciate this opportunity to testify before the Subcommittee on an issue that is of particular interest to my home state of Minnesota.
Mr. Chairman, I testified before the subcommittee last October to express my alarm over a recent wave of
mergers
in the media and communications industry, and the CBS-Viacom deal in particular. Indeed, I have been troubled by the trend towards rapid consolidation in one sector of the economy after another, from agriculture to energy to banking and finance.
Rising concentration in the airline industry is of particular concern to people in Minnesota. In Minnesota we know all about the harmful impact of excessive concentration, especially in agriculture and air travel. The announcement of the United-US Airways deal, and news reports of merger negotiations between Minnesota-based Northwest Airlines and American Airlines, have unleashed a torrent of protest in my state. Already, I have been contacted by consumers, the business community, airline industry employees, and localities from around the state who are extremely concerned.
People in Minnesota understand very well a danger that our antitrust authorities need to take very seriously: that this merger could lead to another round of industry mergers and consolidation. If approved, this deal would create tremendous pressure for other major airlines to follow suit, with a possible merger of Northwest and American being only the first example. Once such wave of mergers is set in motion, I am afraid it would become very difficult to stop.
If the Justice Department is to prevent such a disastrous wave of irreversible consolidation in the airline industry, I believe it must act now to block the proposed merger of United and US Airways.
Thank you.
* * *
END
LOAD-DATE:
June 21, 2000
Document 81 of 110.
Search Terms: United Airlines AND U.S. Airways AND Merger, House or Senate or Joint
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