Rep. Johnson to closely scrutinize airline mega-merger
WASHINGTON, D.C. – Rep. Hank Johnson (GA-04), Chairman of the Judiciary Subcommittee on Courts and Competition Policy, today called for careful scrutiny of the proposed merger of United and Continental Airlines.
The merger would reportedly create the world’s largest airline, breaking a record set just two years ago by the merger of Delta and Northwest. It would also come at a time of heightened concern about airline practices such as multi-company international alliances and aggressive gate swapping that seek to avoid antitrust scrutiny. On the heels of the proposed merger announcement, the Chairman announced that the Judiciary Subcommittee would hold hearings on competition in the airline industry including the proposed merger.
“The disappearance of another major airline could lead to fewer choices and possibly higher prices,” said Johnson. “The potential for increased prices, coupled with consumers’ concerns about continued approval of antitrust immunity for international airline alliances demand that Congress examine this merger. It’s the Judiciary Committee’s responsibility to hold hearings to determine how the public would be impacted by these changes when traveling here and abroad.”
The Judiciary Subcommittee on Courts and Competition Policy expects to hold hearings on this matter soon.