By Del Quentin Wilber
Washington Post Staff Writer
Tuesday, January 22, 2008
Despite the thorny political landscape on Capitol Hill, airline executives believe the time is still right to put a deal together, some analysts and consultants said. One reason: They believe they will have an easier time passing regulatory muster under the Bush administration than its successor.
Transportation Secretary Mary E. Peters, who would advise the Justice Department on the affects of an airline merger, signaled that the executives are probably right.
Citing the economic challenges facing the industry, Peters said in an interview that she believes "there is going to be some consolidation. "To the greatest extent that we can let the market work unfettered, the better off we are as a country," she said, adding that her agency would weigh each proposal on a case-by-case basis.
"Generally, airline mergers are not good for airline employees or consumers," said Rep. Jerry F. Costello (D-Ill.), chairman of the House aviation subcommittee, adding that he would hold hearings into any announced deals. "When airlines merge, it means there are fewer airlines, less competition and higher prices. They cause me grave concern."
Sen. Byron L. Dorgan (D-N.D.) expressed similar misgivings, saying, "I don't think any of the airline problems are going to be solved by airlines getting bigger."
Although lawmakers play no official role in the regulatory process, their attitudes can influence the ability of air carriers and financial backers to finish deals.
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/21/AR2008012102056_2.html
Washington Post Staff Writer
Tuesday, January 22, 2008
Despite the thorny political landscape on Capitol Hill, airline executives believe the time is still right to put a deal together, some analysts and consultants said. One reason: They believe they will have an easier time passing regulatory muster under the Bush administration than its successor.
Transportation Secretary Mary E. Peters, who would advise the Justice Department on the affects of an airline merger, signaled that the executives are probably right.
Citing the economic challenges facing the industry, Peters said in an interview that she believes "there is going to be some consolidation. "To the greatest extent that we can let the market work unfettered, the better off we are as a country," she said, adding that her agency would weigh each proposal on a case-by-case basis.
"Generally, airline mergers are not good for airline employees or consumers," said Rep. Jerry F. Costello (D-Ill.), chairman of the House aviation subcommittee, adding that he would hold hearings into any announced deals. "When airlines merge, it means there are fewer airlines, less competition and higher prices. They cause me grave concern."
Sen. Byron L. Dorgan (D-N.D.) expressed similar misgivings, saying, "I don't think any of the airline problems are going to be solved by airlines getting bigger."
Although lawmakers play no official role in the regulatory process, their attitudes can influence the ability of air carriers and financial backers to finish deals.
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/21/AR2008012102056_2.html
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