[Congressional Record Volume 146, Number 120 (Monday, October 2, 2000)]
[Senate]
[Pages S9597-S9598]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           PROPOSED MERGER OF UNITED AIRLINES AND US AIRWAYS

  Mr. McCAIN. Mr. President, the Commerce Committee recently approved 
S. Res. 344, which expresses the Sense of the Senate that a merger of 
United Airlines and US Airways would hurt consumers' interests. A.G. 
Newmyer, managing director of U.S. Fiduciary Advisors, similarly 
addressed the public interest perspective in a guest editorial printed 
in The Washington Post. I ask unanimous consent that the piece be 
reprinted in the Record in its entirety.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

               [From the Washington Post, Aug. 20, 2000]

                        United We Stand, in Line

                           (By A.G. Newmeyer)

       Chicago was created, as the old joke goes, for New Yorkers 
     who like the crime and traffic but wanted colder winters. And 
     now, it seems, Chicago--like other United Airlines hubs--was 
     created for travelers willing to spend their summer vacations 
     waiting in lines at the airport. If United's proposed 
     takeover of US airways goes through, Washington may have been 
     created for Chicagoans who wanted to spend their days in 
     lines at a smaller airport.
       Given the size of US Airway's operations in our region 
     (particularly its share of traffic at Reagan National 
     Airport), as well as United's proposed rule in operations of 
     the new DC Air frequent fliers worry that the Clinton 
     administration and Congress might actually permit United's 
     expansion.
       United we stand, in line. Divided, we fly . . . at least, 
     some of us.
       Federal Aviation Administrator Jane Garvery recently 
     pointed to myriad factors in explaining this summer's air 
     travel debacle; a system operating at peak capacity in a 
     booming economy, weather, labor, issues and so on. United's 
     senior management, at least until its recent apologies seemed 
     happy to point the finger anywhere but in the mirror.
       Many of the excuses don't stand up to scrutiny. News 
     reports, for example, have noted that United is quicker than 
     other airlines to blame weather for cancellations. Seldom is 
     it mentioned that a carrier's obligation to pay for hotel 
     rooms and otherwise take care of passengers vanishes when 
     nature is the culprit. Similarly, even if pilots are 
     unwilling to fly their customary schedules, customer service 
     agents at the counters and on the phones could be augmented 
     to take care of the obvious resultant crush. Waiting times 
     make a mockery of such customer-friendly tactics, 
     particularly for passengers finding our exactly how 
     inconvenient the convenience of ticket-less travel is.
       Common sense would suggest that United management has a 
     very full plate trying to fly its current fleet. Only the 
     luckiest occasional traveler on United could conclude that 
     the airline has been operating in the public interest this 
     year. Interestingly, the federal government's review of the 
     proposed merger may pay scant attention to common sense.
       The government's review focuses largely on antitrust and 
     competitive considerations, not on the broader public 
     interest. Although the Department of Transportation has a 
     role to play, responsibility for the willingness to treat 
     customers like human beings may get short shrift in a review 
     process that is both legal and laughable.
       In the long term, business courses are likely to include 
     discussion of how United's management ruined a world-class, 
     respected brand, Labor's ownership role and board seats at 
     United may cause other companies to wonder about the efficacy 
     of such arrangements.
       In the short term, the United mess deserves a more thorough 
     governmental review before its management expands its choke-
     hold on passengers to include US Airways and DC Air. Although 
     time is short in this election year, Congress would find vast 
     voter sympathy in reviewing whether applicable merger 
     statutes are appropriate. And before President Clinton finds 
     himself joining the rest of us on commercial flights, he 
     should direct his administration to just say no to a broader 
     role for United in today's unfriendly skies.

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