Your recent editorial regarding airline consolidation, “Scrutinize airline takeover,” (BDN, Jan. 13), suggests that US Airways’ proposed merger with Delta Air Lines would be bad for Bangor. Nothing could be farther from the truth: this combination will be good for all of the communities currently served by US Airways and Delta. An integral part of this merger is our promise to continue to serve every domestic destination currently served by either company.
We do intend to reduce some capacity and in fact that’s the essential rationale for this transaction. Capacity reduction is widely recognized as something that needs to happen in our industry – sooner rather than later. Flying uneconomic routes is bad business sense, and the result of that kind of business sense has been losses (approximately $35 billion since 2001) and 10 airline bankruptcies since 2000 (including both Delta and US Airways). Absent industry consolidation of major carriers that rationalizes overlap and eliminates empty seats, the future of the industry will continue to be losses, bankruptcies and government bailouts, paid for with your tax-dollars.
When we testify to Congress later this month, we intend to help them understand how the realities of the airline industry have changed since they last reviewed an airline merger. Like you, we recognize that Congress deregulated the airlines precisely to enhance competition, and a centrally controlled airline industry, in which the government effectively mandates who flies where and how often, is in no one’s interest. Of course, it’s up to the Department of Justice to evaluate the impact of this merger on competition, and we look forward to the opportunity to advocate for our deal, which we are confident will enhance choice for consumers and make the industry more, not less, competitive.
Elise Eberwein
Senior Vice President, People, Communications and Culture
US Airways Group, Inc.
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