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Lawmakers urge bidding for gates in American merger

🕐 1 min read

 

DALLAS (AP) — Four key members of Congress say that all airlines — not just low-fare carriers — should be able to bid on gates and landing rights that American Airlines and US Airways will give up after their merger.

The leaders of the House and Senate transportation committees say they’re worried that unless the big airlines can bid, service between Washington and some smaller cities may be lost.

The U.S. Justice Department settled a lawsuit challenging the merger earlier this month after American and US Airways agreed to give up gates and landing rights at several big airports, notably Washington’s Reagan National Airport. Officials said those assets would go to low-cost airlines because the big, so-called legacy airlines — the biggest being United and Delta — had stifled competition.

On Friday, top Democrats and Republicans on the transportation committees released a letter that they sent to Attorney General Eric Holder urging that bidding be open to all airlines. They said that low-cost carriers don’t generally fly to smaller cities.

The settlement was widely viewed as likely to benefit Southwest Airlines and JetBlue Airways, two self-avowed low-cost carriers that have indicated interest in getting some of the American and US Airways landing rights at Reagan National.

However, Delta had also expressed interest in picking up landing rights at Reagan National and two gates that American agreed to surrender at Dallas Love Field. “We do believe that all airlines should have an opportunity to bid on the divested assets,” Delta spokesman Trebor Banstetter said Friday.

 

Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

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