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Release date 03/19/2013
WASHINGTON, D.C. — At a Senate hearing on the proposed merger of American Airlines and US Airways to be held today, Consumers Union, the advocacy arm of Consumer Reports, will raise concerns about the deal’s potential impact on consumers.
William J. McGee, travel and aviation consultant for Consumers Union, has noted, “With each mega-merger in the airline industry, we’ve been told competition will be enhanced and consumers will be better served, and each time this has not happened.”
Consumers Union is concerned that the proposed merger – which would be the fifth among major network airlines since 2001 -- could mean fewer flights and fewer choices for consumers, plus higher fares and lower quality of service. The nonprofit organization has concerns that more consolidation could make it even harder for low-cost airlines to compete effectively, and push the biggest airlines further into ‘too-big-to-fail’ territory.
“There is no substitute for competition to keep an airline from raising fares and reducing service. A merger of this magnitude can dramatically change the structure of the market and fundamentally alter profit-making incentives, in ways that take those incentives further away from keeping fares low and improving service. The Justice Department needs to take a hard look at this deal,” McGee said.
At today’s hearing held by the Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights, Consumers Union’s McGee will testify as part of a panel of witnesses that includes the CEOs of American and US Airways, as well as a member of the American Antitrust Institute.
Consumers Union is the public policy and advocacy division of Consumer Reports. Consumers Union works for health reform, food and product safety, financial reform, and other consumer issues in Washington, D.C., the states, and in the marketplace. Consumer Reports is the world’s largest independent product-testing organization. Using its more than 50 labs, auto test center, and survey research center, the nonprofit rates thousands of products and services annually. Founded in 1936, Consumer Reports has over 8 million subscribers to its magazine, website, and other publications.
Contact:
David Butler, Consumers Union, 202.462.6262 or dbutler@consumer.org
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2013 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2013 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.