Earlier this year, in the wake of the United-US Airways announcement, American Airlines, the nation's second largest carrier behind United, announced its plan to acquire the nation's eighth largest airline, Trans World Airlines. . . If these and other as yet unborn mergers are allowed to move forward, the nation's airline landscape will be almost entirely dominated by three or four regional cartels, and the only thing more uncommon than consumer choice will be an inexpensive airline ticket. This looming wholesale consolidation in the airline industry, set into motion by the United-US Airways merger, is categorically not in the best interest of consumers. It is a nightmare scenario for the American airline traveler that DOJ can and should stop in its tracks, consistent with its duties under federal antitrust law. For these reasons, I urge the DOJ to block implementation of the United-US Airways merger.
Meaningful competition is virtually non-existent out of Denver according to every measure.
The logical consequence of this competitive deficit is that travelers at DIA have been forced to pay among the highest fares in the country while enduring glaringly inadequate air service. As a conservative, I generally don't advocate government intervention in the private market. But where a monopoly unduly dominates business activity in a given sector, and where consumer injury is manifest, government has a fundamental obligation to intervene. Monopolies cannot be left unchecked in a marketplace where consumers are powerless to respond. Our nation's antitrust laws contemplate exactly the anti-competitive situation that plagues the airline industry.