WASHINGTON, D.C.—The U.S. Senate Committee on Commerce, Science, and Transportation held a full committee hearing today on the financial state of the airline industry and the implications of consolidation.

Witness List:

The Honorable Susan Kurland, Assistant Secretary for Aviation and International Affairs, U.S. Department of Transportation

Mr. Jeffery A. Smisek, Chairman, President and Chief Executive Officer, Continental Airlines

Mr. Glenn F. Tilton, Chairman, President and Chief Executive Officer, United Airlines

Mr. Robert Roach, Jr., General Vice President – Transportation, The International Association of Machinists and Aerospace Workers

Mr. Charlie Leocha, Director, Consumer Travel Alliance

Mr. Dan McKenzie, Industry Analyst, Hudson Securities

Key Quotations from Today’s Hearing: 

“In an effort to become stronger, United and Continental have announced their intention to merge, creating the world’s largest airline – comparable to Delta after its merger with Northwest. If this merger is approved, our passenger aviation system will have one less global network carrier, and I am not sure if this is good or bad, but it is increasingly clear that the current structure is not financially sustainable. I do not want to advocate for higher fares, but the truth is that brutal competition and too many seats have probably led to artificially low fares—the terrible irony is that a weak airline industry can be good for consumers.”

Chairman John D. (Jay) Rockefeller IV

“Our consideration of aviation economic policy focuses on what is best for a healthy and a competitive industry, for its workers, and for the communities and consumers that it serves. Our goal must be to strike what is often a very difficult balance in the face of a complex and dynamically changing industry. Importantly, in doing so we must also consider the longer term, collective impact on all stakeholders, most importantly America’s traveling public.”

The Honorable Susan Kurland, Assistant Secretary for Aviation and International Affairs, U.S. Department of Transportation

“As we have talked to our customers, our employees and our shareholders, we have felt a great sense of excitement about this merger. By bringing the best of both organizations together, we believe we can not only create a world-class airline with enduring strengths, but also serve our customers and communities better than ever, provide security and stability for our employees and benefit shareholders with a strong financial foundation.”

Mr. Jeffery A. Smisek, Chairman, President and Chief Executive Officer, Continental Airlines and Mr. Glenn F. Tilton, Chairman, President and Chief Executive Officer, United Airlines 

“As this merger proposal moves forward, the Machinists Union asks regulators to take the merger’s impact on employees into consideration. A combined carrier must offer employees more stability and opportunity than are available at the two independent airlines. The merger cannot be at the expense of workers who have already sacrificed to keep their airlines aloft. United and Continental employees did not accept job cuts and wages and benefit changes when their employers restructured just to lose out again in a merger.”

Mr. Robert Roach, Jr., General Vice President – Transportation, The International Association of Machinists and Aerospace Workers 

“From a consumer perspective, this continued consolidation may be helping large airlines survive in the short run but when the economy improves, consumers —both leisure and business — will be left at the mercy of a government?approved system of airline oligopoly with less competition and, as a result, according to Department of Justice analysis, ultimately higher airfares.”

Mr. Charlie Leocha, Director, Consumer Travel Alliance 

“As has been widely reported and recognized, the US airline industry, with the exception of low cost carriers, has been a financial failure. We’ve seen serial bankruptcies in successive decades. And if there is one point I want to leave with you, it’s this: despite the fact that the industry is structured as a monopolistic oligopoly, it hasn’t behaved as one, and there are a number of reasons for why this behavior won’t change looking ahead.”

Mr. Dan McKenzie, Industry Analyst, Hudson Securities

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