We have worked over the past year to make changes in an aviation environment that suffers from institutional impediments to competition, such as slot controls and perimeter rules. Although the Transportation and Justice Department will review each alliance proposal, next week I plan to ask the General Accounting Office to report on the competitive implications of airline industry consolidation, given all three alliance proposals.
New entrants face anti-competitive restraints when competing with the large, established carriers.
These alliance announcements underscore the importance of size advantages to the established carriers, especially since the carriers will not benefit from the cost efficiencies typically associated with a merger. We must work harder than ever to ensure that consumers can continue to benefit from new entry, and the existence of equal opportunities for all sizes of carriers to enter the market and compete.