Harry Reid: “I rise today because I am deeply concerned with the sudden increase in airline merger proposals. Many have predicted…”

“I rise today because I am deeply concerned with the sudden increase in airline merger proposals. Many have predicted that if the proposed merger of United Airlines and US Airways is allowed to go forward, it will be followed by mergers of other major airlines, and we will soon have an industry dominated by mega-carriers. American Airlines recently bought Reno Air, and now is proposing a merger of American Airlines and Trans World Airlines. If this trend continues, we could end up with only three airlines in America. That could drive prices sky high and cut the number of available flights, which will be terrible for consumers. I know first hand that mergers can hurt consumers. In my own state, the Reno-Tahoe International Airport lost flights when American Airlines bought Reno Air. Flights were reduced significantly and now it is harder for people to fly in and out of the Reno and Lake Tahoe areas. The purpose of deregulation was to encourage competition. Evidence seems to support a reduction in competition. It seems to be having an opposite effect. I am very concerned with the recent airline merger proposals and the merger frenzy that may follow. We must maintain as much competition as possible in the airline industry. This legislation will protect consumers against monopolistic abuses. I emphasize that this type of legislation is not my preferred approach--I would greatly prefer to continue to have consumers protected by adequate competition in a free market.”