S. HRG. 106–1125 UNITED AIRLINES/US AIRWAYS MERGER HEARING BEFORE THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED SIXTH CONGRESS SECOND SESSION JUNE 21 AND 22, 2000 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PRINTING OFFICE 82–425 PDF WASHINGTON : 2004 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 09:30 Feb 12, 2004 Jkt 082425 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\WPSHR\GPO\DOCS\82425.TXT JIMC SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED SIXTH CONGRESS SECOND SESSION JOHN MCCAIN, Arizona, Chairman TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii SLADE GORTON, Washington JOHN D. ROCKEFELLER IV, West Virginia TRENT LOTT, Mississippi JOHN F. KERRY, Massachusetts KAY BAILEY HUTCHISON, Texas JOHN B. BREAUX, Louisiana OLYMPIA J. SNOWE, Maine RICHARD H. BRYAN, Nevada JOHN ASHCROFT, Missouri BYRON L. DORGAN, North Dakota BILL FRIST, Tennessee RON WYDEN, Oregon SPENCER ABRAHAM, Michigan MAX CLELAND, Georgia SAM BROWNBACK, Kansas MARK BUSE, Republican Staff Director MARTHA P. ALLBRIGHT, Republican General Counsel KEVIN D. KAYES, Democratic Staff Director MOSES BOYD, Democratic Chief Counsel (II) VerDate 0ct 09 2002 09:30 Feb 12, 2004 Jkt 082425 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\82425.TXT JIMC C O N T E N T S JUNE 21, 2000 Page Hearing held on June 21, 2000 ............................................................................... 1 Statement of Senator Breaux ................................................................................. 14 Statement of Senator Brownback ........................................................................... 11 Statement of Senator Cleland ................................................................................. 75 Statement of Senator Dorgan ................................................................................. 17 Statement of Senator Frist ..................................................................................... 7 Statement of Senator Gorton .................................................................................. 57 Prepared statement .......................................................................................... 57 Statement of Senator Hollings ............................................................................... 4 Prepared statement .......................................................................................... 5 Statement of Senator Kerry .................................................................................... 12 Statement of Senator McCain ................................................................................. 1 Letter dated June 9, 2000 to Hon. John McCain from Alfred E. Kahn, Robert Julius Thorne Professor of Political Economy, Emeritus, Cornell University: Chairman, Civil Aeronautics Board 1977–78 ......................... 2 Statement of Senator Rockefeller ........................................................................... 7 Prepared statement .......................................................................................... 9 Statement of Senator Snowe ................................................................................... 15 Statement of Senator Wyden .................................................................................. 14 WITNESSES Collins, Hon. Susan M., U.S. Senator from Maine ............................................... 17 Prepared statement .......................................................................................... 19 Goodwin, James E., Chairman and CEO, United Airlines .................................. 20 Prepared statement .......................................................................................... 21 Johnson, Robert L., Chairman and CEO, DC Air ................................................. 30 Prepared statement .......................................................................................... 32 Leonard, Joseph, Chairman and CEO, AirTran Airways, Inc. ............................ 35 Prepared statement .......................................................................................... 38 Wolf, Stephen M., Chairman, US Airways ............................................................ 25 Prepared statement .......................................................................................... 28 APPENDIX America West Airlines, Inc., prepared statement ................................................. 136 George, Kent G., Executive Director, Allegheny County Airport Authority, prepared statement .............................................................................................. 130 Neeleman, David, Chief Executive Officer, JetBlue Airways Corporation, pre- pared statement ................................................................................................... 132 Perkins, Ed, Consumer Advocate, The American Society of Travel Agents, Inc., prepared statement ..................................................................................... 134 Response to written questions submitted to DC Air by: Hon. Slade Gorton ............................................................................................ 107 Hon. John McCain ............................................................................................ 108 Response to written questions submitted to James E. Goodwin by: Hon. Max Cleland ............................................................................................. 108 Hon. Slade Gorton ............................................................................................ 111 Hon. Ernest F. Hollings ................................................................................... 113 Hon. John McCain ............................................................................................ 115 Hon. John D. Rockefeller ................................................................................. 118 Response to written questions submitted to Joseph Leonard by: Hon. Max Cleland ............................................................................................. 120 (III) VerDate 0ct 09 2002 09:30 Feb 12, 2004 Jkt 082425 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\82425.TXT JIMC IV Page Response to written questions submitted to Joseph Leonard by—Continued Hon. Slade Gorton ............................................................................................ 122 Hon. Ernest F. Hollings ................................................................................... 122 Hon. John McCain ............................................................................................ 124 Hon. John D. Rockefeller ................................................................................. 125 Response to written questions submitted to Stephen M. Wolf by: Hon. Max Cleland ............................................................................................. 126 Hon. Slade Gorton ............................................................................................ 127 Hon. Ernest F. Hollings ................................................................................... 128 Hon. John McCain ............................................................................................ 129 JUNE 22, 2000 Hearing held on June 22, 2000 ............................................................................... 79 Statement of Senator Cleland ................................................................................. 101 Statement of Senator Dorgan ................................................................................. 93 Statement of Senator Gorton .................................................................................. 96 Statement of Senator McCain ................................................................................. 79 Statement of Senator Wyden .................................................................................. 99 WITNESSES McFadden, Hon. Nancy E., General Counsel, Department of Transportation ... 79 Prepared Statement ......................................................................................... 82 Foer, Albert A., President, American Antitrust Institute .................................... 86 Prepared Statement ......................................................................................... 87 APPENDIX Response to written questions submitted to Albert A. Foer by: Hon. Max Cleland ............................................................................................. 140 Hon. Slade Gorton ............................................................................................ 140 Hon. Ernest F. Hollings ................................................................................... 141 Hon. John McCain ............................................................................................ 142 Response to written questions submitted to Nancy E. McFadden by: Hon. Slade Gorton ............................................................................................ 143 Hon. John McCain ............................................................................................ 146 VerDate 0ct