usairways.com -> corporate information -> news releases -> June 13, 2000

WASHINGTON, D.C., June 13, 2000 -- US Airways Chairman Stephen M. Wolf told a key Congressional committee today that the merger of US Airways and United Airlines will expand the benefits of affordable air travel to millions of Americans.

This merger "will create the first airline of the 21st century. It will be a milestone in commercial aviation, joining the complementary systems and assets of two veteran and successful carriers to create the nation’s and the world’s most efficient and comprehensive route network, much to the benefit of the customers and communities we serve, Wolf said in testimony prepared for the House Committee on Transportation and Infrastructure.

"Just as the great airlines that emerged from the onset of deregulation have brought the benefits of affordable air travel to millions of Americans, so will those benefits be expanded even further in the 21st century evolution of this system," Wolf said.

"And just as the first era of deregulation spawned new and powerful forces such as Southwest Airlines, so, too, can we expect to see a new competitive spirit emerge in coming decades as new opportunities arise."

Wolf said United Airlines is the "ideal partner" to give customers and communities served by US Airways immediate expanded service across the breadth of North America and the Caribbean and to Europe, Asia and South America.

By gaining convenient access to international destinations, communities such as Rochester, Tampa and Charleston as well as hubs such as Charlotte, Pittsburgh and Philadelphia "will see traffic multiply and business opportunities flourish."

Wolf pointed to the creation of DC Air, which will serve Washington’s Reagan National Airport, as another example of the immediate competitive impact of the merger.

DC Air will be "the nation’s largest minority-owned airline and will bring about the most significant pro-competitive change since slot controls were initiated at Washington National in 1968."

Wolf noted that DC Air will be only the latest of new and highly competitive carriers that have emerged in the era of deregulation.

"In the eastern United States alone, regional and low-cost carriers such as Southwest, Delta Express, AirTran and JetBlue have transformed the landscape and significantly expanded consumer choice," Wolf said.

"All signs indicate that this trend is likely to continue; the merger of US Airways and United will not interrupt it, but will augment it. We will spark growth industry wide."

It is in the new global marketplace, however, that the real impact of the merger will be felt, Wolf said.

"The new merged airline is positioned to compete head to head with the leading carriers of Europe and Asia, as these airline are undergoing a similar transformation. Allowing U.S. customers to respond to the new global market, we can bolster the world leadership of our industry. This merger is an important step in doing so," Wolf said.