Rep. Dennis Kucinich expresses doubts about sincerity of airline merger
He is skeptical of the sincerity of Continental Airlines' in its arguments for a merger with United Airlines, said Rep. Dennis Kucinich, D-Ohio.
The Cleveland Plain Dealer reported on Wednesday that in a letter to Continental's Chairman Jeffery Smisek, Kucinich said, "Continental's apparent willingness to make whatever representations are necessary to elected officials and regulators to garner support for its plans casts doubt on both Continent's stated motivations … and its intended post-merger conduct."
Concerned about the possibility of job losses and increased fares, Kucinich questioned the need for a merger, given Continental's statements that it would remain profitable with the Department of Transportation's approval to share marketing costs and coordinate flight schedules with other airlines.
According to the letter, "It is quite possible that any efficiency gains that are trumpeted as a result of the merger … may have already been or will soon be realized," through partnerships with others.
The newspaper further reported that Kucinich and Smisek are both scheduled to testify at a House Transportation Aviation Subcommittee review of the merger. (With inputs from Agencies)