[Congressional Record Volume 147, Number 12 (Tuesday, January 30, 2001)]
[Extensions of Remarks]
[Page E55]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E55]]
IMPROVE, DON'T RE-REGULATE OUR NATION'S AVIATION SYSTEM--THESE REMARKS 
  APPEARED AS A ``GUEST COLUMN'' IN THE ALTOONA MIRROR ON JANUARY 29, 
                                  2001

                                 ______
                                 

                            HON. BUD SHUSTER

                            of pennsylvania

                    in the house of representatives

                       Tuesday, January 30, 2001

  Mr. SHUSTER. Mr. Speaker, at the end of this month, I am retiring 
from Congress after being fortunate enough to represent the 9th 
District of Pennsylvania for 28 years, most recently as chairman of the 
House Committee on Transportation and Infrastructure. I am proudest of 
my efforts to improve the nation's transportation system, especially 
highways, transit, and airports.
  In 1998, I introduced the Transportation, Equity Act for the 21st 
Century, which guaranteed that revenue from highway users will be used 
to fund transportation improvements. This landmark legislation, TEA-21, 
will result in a $219 billion investment in highway and transit systems 
by 2003.
  And last April, President Clinton signed into law my Aviation 
Investment and Reform Act for the 21st Century (AIR-21), which will 
unlock revenue from taxes on airline tickets to enhance aviation safety 
and improve infrastructure by providing more money for terminals, 
gates, taxiways and other improvements. Overall funding for Federal 
Aviation Administration programs will increase from about $10 billion 
in fiscal 2000 to more than $13 billion annually over the next three 
years.
  However, I believe this bipartisan measure should be regarded as only 
a first step. The FAA still lacks funding to modernize the air traffic 
control system, and we remain woefully short of airport capacity to 
serve the 660 million passengers who fly each year, a number that has 
more than doubled since 1978.
  In recent months, there has been considerable discussion about how 
consolidation in the airline industry will affect the future of air 
travel, particularly in the wake of proposed mergers between United 
Airlines and US Airways, initiated last May, and the American Airlines 
takeover of TWA, announced this month. In my opinion, much of the 
concern about these developments is misplaced.
  The United-US Airways merger, for example, will create more than 500 
new airport-to-airport routes, including 64 new domestic nonstop 
flights. But more importantly, it will preserve and expand access by US 
Airways passengers to a convenient, seamless, national and 
international airline network--the kind of air travel that is essential 
for companies doing business in today's global economy. Without this 
merger, US Airways is almost certain to fade away, costing tens of 
thousands of jobs and reducing air service--especially for smaller 
cities on less-profitable routes that usually are the first to lose 
flights and the last to get them back.
  Many of the same benefits apply to the American Airlines purchase of 
TWA, which has lost money for a decade and is now in its third visit to 
bankruptcy court. American gains a strong hub in St. Louis, allowing it 
to increase competition by adding capacity. But more significantly, the 
deal will preserve access to a competitive, comprehensive airline 
network for the cities now served by TWA.
  Certainly, these mergers raise some issues, which are being handled 
by the Justice Department. United has proposed to increase 
competitiveness by operating the Boston-New York-Washington shuttle 
with American. DC Air, the spin-off airline created by the merger, will 
preserve service from Reagan National Airport to the 43 cities now 
served by US Airways. In addition, American is buying 49 percent of DC 
Air (thus giving the new airline access to American's planes, capital 
and operating expertise), and has agreed to maintain nonstop service on 
five key hug-to-hub flights where both United and US Airways currently 
operate for at least 10 years to ensure competition.
  I believe Justice is quite capable of ensuring that these mergers 
will benefit the traveling public. But I think it would be a mistake to 
re-regulate the airlines, as suggested by some well-meaning lawmakers. 
The airline industry does not need federally mandated competition 
``guidelines''--it needs the gates, terminals, runways and traffic 
control systems that will allow it to grow. Even though many carriers 
have come and gone in the 20-plus years since airlines were 
deregulated, average fares have dropped 40 percent in constant 
dollars--proof of healthy competition in the skies.
  Half a century ago, the president and Congress launched what became 
the world's greatest road network, America's Interstate highway system. 
I am proud that we have taken steps to preserve that network. And I 
hope that the new Administration and Congress will make the same effort 
to enhance our nation's system of air travel.

                          ____________________