United-US Airways merger draws opposition

Friday, July 28, 2000 | 11:13 a.m.

United Airlines' plan to take over US Airways ran into more opposition Thursday as United's pilot union reactivated its strike committee, and key senators opposed the deal.

Neither the Air Line Pilots Association (ALPA) nor Congress can block or veto the merger, but both actions suggest that United may not be able to close the deal, announced in May, as quickly as it hopes.

The union wants a contract with United by Labor Day to address its concerns that pilots will lose jobs in a merger.

Even if United wins approval from its pilots, it must win Justice and Transportation departments' approval to buy US Airways.

Those agencies are certain to listen to objections from key senators like John McCain, R-Ariz., chairman of the Senate Commerce Committee.

A United/US airways merger, he said in a Thursday hearing, would set off a chain of other mergers, reducing the major airlines to three big carriers and therefore cutting competition.

Sen. Richard Bryan, D-Nev., spoke up against the merger Thursday. Nevada's tourism-based economy is largely dependent on affordable air travel to Las Vegas and Reno.

"This merger presents a threat that could profoundly change the industry," he said. "We are heading towards a major consolidation of the airline industry with the consumer getting the short end of the stick."

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