Wed, Dec 02, 2009
USAPA Says Deal Raises Anti-Trust Questions
The US Airline Pilots Association (USAPA) said Monday that it
is seeking a full investigation on the impact of a proposed slot,
gate and facility transaction between US Airways (LCC) and Delta
Airlines at New York’s LaGuardia and Washington’s
Reagan National airports. In a letter to Christine Varney,
assistant attorney general of the Department of Justice’s
Antitrust Division, USAPA stated that this transaction may have
serious antitrust concerns.
“We are extremely concerned about the market concentration
that this transaction would create if it is allowed to be
consummated,” said USAPA President Mike Cleary. “Those
conditions raise the prospect of much higher fares and, if history
repeats itself, a reduction in service to smaller communities. It
also places a great burden on many of US Airways’ New
York-based employees whose jobs will be eliminated and will cause
financial harm to the New York City and tri-state economy. With all
that is at stake, the transaction warrants a thorough review of the
consequences of a deal that creates this level of market
domination.”
The proposed transaction calls for the transfer of 125 pairs of
New York’s LaGuardia Airport slots from US Airways to Delta
Airlines and 42 pairs of Washington’s Reagan National Airport
slots from Delta Airlines to US Airways. A pair of slots is both a
takeoff and a landing right. In addition, US Airways proposes to
transfer what USAPA believes to be LaGuardia Airport’s most
coveted real estate and gates to Delta Airlines.
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