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Have Gov't Antitrust Actions Made Airlines' Woes Worse?(ISSUES & INSIGHTS)(NATIONAL ISSUE)
Byline: JOSEPH GUINTO
What hurts consumers more, a merger or a bankruptcy? That's what some are asking after financial woes at US Airways and United Airlines.
The two carriers scrapped a merger last summer after the Justice Department threatened to sue. It's hard to imagine now, but at the time Washington fretted the combined carrier would be too dominant.
Dozens of lawmakers complained that deal would hurt constituents. Sen. Charles Schumer, D-N.Y., for one, said it would mean a cutback in flights to New York, especially daily service from Washington's Dulles International to upstate cities.
But times have changed. US Airways is bankrupt. It's cut more than 30% of its schedule. United, veering toward Chapter 11, has slashed flights by 20% and laid off thousands.
And flights between Dulles and upstate New York? United has cut daily departures to Albany from nine to four, to Syracuse from nine to three, and to Rochester from 11 to four. More cuts may be coming.
Should Have Merged
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