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Aviation Competition: Issues Related to the Proposed United Airlines-US Airways Merger

File Language:
English


Details

  • Corporate Creators:
    United States. Government Accountability Office
  • Subject/TRT Terms:
  • Publication/ Report Number:
    GAO-01-212
  • Resource Type:
    Research Paper
  • Geographical Coverage:
  • Corporate Publisher:
    United States. General Accounting Office
  • Abstract:
    In May 2000, two of the nation's largest airlines, United Airlines (United) and US Airways, proposed to merge. As part of the overall agreement, United and US Airways also proposed to divest some of US Airways' assets at Ronald Reagan Washington National Airport (Reagan National) to create an airline to be known as DC Air. Concern has arisen regarding the possible effects that the merged airline ('new United') would have on competition in the airline industry and whether DC Air would be an effective competitor. The Department of Justice is currently reviewing the proposal to determine if the merger would violate U.S. antitrust laws and, if so, whether the proposed divestiture constitutes an adequate remedy. In its review, Justice considers a number of factors, including increases in market concentration; potential adverse effects on competition of the transaction; the likelihood of new entry; possible efficiencies or other benefits; and whether, absent the merger, one of the airlines will fail and exit the market and there is no less anticompetitive alternative. This report primarily focuses on the potential competitive aspects of the proposed merger and analyzed three issues: (1) how the proposed merger would alter the U.S. domestic airline industry; (2) the potential harmful and beneficial effects of the proposed merger on consumers, focusing on its effects on competition in specific markets; and (3) how the service that DC Air is planning to offer compares with the service scheduled by other airlines in the same markets.
  • Format:
    PDF
  • Collection(s):
  • Main Document Checksum:
    urn:sha256:49e192cedc8f05cdcf773cbd1e42cab420aba5d03f5d2799861f6aaa3e097919
  • Download URL:
  • File Type:
    Filetype[PDF - 227.00 KB ]
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