The USA Today reports that while United Airlines and Continental appear to be clear for merger take-off, some politicians who oppose the merger have threatened they might try to re-regulate the industry.
Chairman of the Houst Transportation and Infrastructure Committee, James Oberstar (D-Minn.), and Jerry Costello (D-Ill.) are considering “legislation (that) would impose federal regulation of airline pricing and re-establish a government gatekeeper role similar to that played by the old Civil Aeronautics Board prior to deregulation in 1978.”
Deregulation has been credited with making airline travel affordable for the average American. But Oberstar pointed to the $2.7 billion the airlines earned in baggage fees in 2009 as evidence that consumers are no longer benefiting from the system. He said he believes there’s support in the House for re-regulation.
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