AAflyer
Well-known member
- Joined
- Nov 26, 2001
- Posts
- 1,493
I thought he would be taking care of his boys at NWA. Yikes!
AAflyer
Carrier gets an ally for China
By LIZ FEDOR
Minneapolis Star Tribune
A key House Democrat, the incoming transportation committee chairman, said it might make sense for the government to award the next U.S.-China flight to American Airlines because that would boost competition across the Pacific Ocean.
American is competing against United, Northwest and Continental airlines for the rights to a daily nonstop flight to China beginning next year. American, which flies just one route to China, is proposing to fly between its Dallas/Fort Worth Airport hub and Beijing, connecting cities in the southern U.S. and the airline's major Latin American network to the Chinese capital.
Rep. Jim Oberstar, who counts Minnesota-based Northwest among his constituents, told the Minneapolis Star-Tribune that he intends to recommend by mid-December that the Transportation Department award the route to American or United.
"From the standpoint of competition, it might be a better decision by DOT to award service to American, provided their service will challenge United," which along with Northwest dominates U.S. routes to Asia, Oberstar said.
Oberstar categorized Northwest and Continental as "second tier" players in the competition. Northwest wants to link Detroit and Shanghai; Continental, Newark and Shanghai; and United, Washington and Beijing. Shanghai is China's financial center.
American's competitors have criticized American's proposal, saying North Texas would generate little traffic by itself for the route. American is arguing that it can connect a lot of travelers from cities that have little service to Asia. American's other route to China is Chicago-Shanghai.
The Transportation Department is expected to make its decision as early as this month.
Oberstar also said he intends to take a hard look at potential airline mergers in the coming months because he knows that such moves often cause pain for employees and hurt some consumers.
US Airways is making a hostile bid for Delta Air Lines, and experts say that could trigger other industry combinations.
Next month, Oberstar will assume the chairmanship of the House Transportation and Infrastructure Committee, where he will be well-positioned to raise concerns in the event that a wave of consolidation sweeps the airline industry next year.
While airlines don't need congressional approval to merge, Oberstar's post allows him to spotlight antitrust issues that the Justice Department is legally obliged to examine.
"People are saying [that] there is overcapacity" and that some seats should be removed from the market through mergers and other consolidation, Oberstar said. But he sees carriers flying with many full planes and argues that "there is a lack of substantial competition" on many routes.
US Airways and Delta compete on about 155 domestic routes, and Oberstar said he has directed his staff to examine the effect of a merger on those routes.
"What does this do in markets where the two carriers are now competing?" he said. "Who are the other competitors in those markets? Will some cities lose out? Will travelers [end up] paying higher fares?
"Those are the questions that I think have to be evaluated before you can make a judgment on whether this proposed merger would be in the overall best public interest."
AAflyer
Carrier gets an ally for China
By LIZ FEDOR
Minneapolis Star Tribune
A key House Democrat, the incoming transportation committee chairman, said it might make sense for the government to award the next U.S.-China flight to American Airlines because that would boost competition across the Pacific Ocean.
American is competing against United, Northwest and Continental airlines for the rights to a daily nonstop flight to China beginning next year. American, which flies just one route to China, is proposing to fly between its Dallas/Fort Worth Airport hub and Beijing, connecting cities in the southern U.S. and the airline's major Latin American network to the Chinese capital.
Rep. Jim Oberstar, who counts Minnesota-based Northwest among his constituents, told the Minneapolis Star-Tribune that he intends to recommend by mid-December that the Transportation Department award the route to American or United.
"From the standpoint of competition, it might be a better decision by DOT to award service to American, provided their service will challenge United," which along with Northwest dominates U.S. routes to Asia, Oberstar said.
Oberstar categorized Northwest and Continental as "second tier" players in the competition. Northwest wants to link Detroit and Shanghai; Continental, Newark and Shanghai; and United, Washington and Beijing. Shanghai is China's financial center.
American's competitors have criticized American's proposal, saying North Texas would generate little traffic by itself for the route. American is arguing that it can connect a lot of travelers from cities that have little service to Asia. American's other route to China is Chicago-Shanghai.
The Transportation Department is expected to make its decision as early as this month.
Oberstar also said he intends to take a hard look at potential airline mergers in the coming months because he knows that such moves often cause pain for employees and hurt some consumers.
US Airways is making a hostile bid for Delta Air Lines, and experts say that could trigger other industry combinations.
Next month, Oberstar will assume the chairmanship of the House Transportation and Infrastructure Committee, where he will be well-positioned to raise concerns in the event that a wave of consolidation sweeps the airline industry next year.
While airlines don't need congressional approval to merge, Oberstar's post allows him to spotlight antitrust issues that the Justice Department is legally obliged to examine.
"People are saying [that] there is overcapacity" and that some seats should be removed from the market through mergers and other consolidation, Oberstar said. But he sees carriers flying with many full planes and argues that "there is a lack of substantial competition" on many routes.
US Airways and Delta compete on about 155 domestic routes, and Oberstar said he has directed his staff to examine the effect of a merger on those routes.
"What does this do in markets where the two carriers are now competing?" he said. "Who are the other competitors in those markets? Will some cities lose out? Will travelers [end up] paying higher fares?
"Those are the questions that I think have to be evaluated before you can make a judgment on whether this proposed merger would be in the overall best public interest."
