Chairmans Hatch and DeWine, Ranking Members Leahy and Kohl, and other distinguished Members of the committee, thank you for the opportunity to testify today. I am here because of the tremendous impact aviation has on my district’s current and future economic welfare, as well as the significant role aviation has on our country’s economic and national security infrastructure.

For the record, I understand and share some of the concerns expressed regarding consolidation in the airline industry. Since I was elected to Congress three years ago, I have fought vigorously for service to smaller communities and increased competition. Despite much opposition from local elected officials in New York City as well as civic organizations in my district, I, and Senator Schumer, successfully brokered a compromise in the historic AIR-21 legislation that increased service opportunities to upstate New York and other underserved destinations around the country from both New York City airports. Furthermore, I worked tirelessly with former Secretary of Transportation Rodney Slater and Senator Schumer to get Jet Blue the regulatory approval to operate out of John F. Kennedy International Airport, which lies in the center of my congressional district.

However, the announced agreements between United Airlines and US Airways as well as American Airlines acquisition of TWA’s assets have my strong support because I believe that both deals will increase domestic competition, continue air service to communities that now have service, and protect the jobs and retiree health and pension benefits of thousands of current and former employees. I judge each deal on a case-by-case basis weighing the merits and public interest benefits. In the United-US Air and American-TWA proposals, consumers, employees, creditors and other stakeholders will benefit from not having two financially-distressed airlines such as US Airways and TWA go out of business like their former counterparts Pan Am, Eastern, and Braniff.

It is important for you to recognize the economic impact of having an airline go out of business. My district still suffers from the devastating economic losses of Eastern Airlines and Pan American Airways. In both cases, the court allowed the airlines’ assets to be liquidated to the highest bidder. It resulted in the two airlines’ competitors acquiring Eastern and Pan Am’s most prized routes. However, it also resulted in thousands of permanent displaced workers, who, in many cases, were employed by one of the carriers for more than 30 years. This action by the bankruptcy court left those American workers without a job and no benefits after a lifetime of service and dedication to Eastern or Pan Am.

Despite the claims by opponents that are being made against the two announced consolidation proposals, if you look back closely to the Eastern and Pan Am case, you will see a contradiction to the argument being made against the United-US Airways and American-TWA deal. Eastern and Pan Am’s competitors achieved greater market concentration with their newly acquired assets from two liquidated defunct-airlines. Mr. Chairman, how did this increase competition? It did not. As I stated earlier, it only resulted in the employees and retirees of Eastern and Pan Am being hurt the most. We must not repeat that mistake again.

Let me be very clear, the proposed agreements between United-US Airways and American-TWA are in the public interest. As a recent New York Times editorial said: "Travelers in the Northeast will probably see more competition as a result of these agreements." I agree. For example, these deals will bring a strong third competitor in the lucrative Boston-NewYork-DC shuttle market. Meanwhile, the nationwide competitive impact will be enhanced greatly. For example, United’s Charlotte hub will compete more vigorously with Delta’s Atlanta hub, United’s Philadelphia hub will compete more vigorously with Continental’s Newark hub, and American’s St. Louis hub will compete more vigorously with Northwest’s Minneapolis hub.

Furthermore, the DC Air/American deal will also ensure strong competition between United and DC Air in the Washington, DC region. DC Air’s agreement with American Airlines also ensures the initial success of DC Air as an independent entity with a lower cost structure which can be translated into lower fares for the consumers which will be served on the 45 routes by DC Air.

The DC Air/American Airlines partnership enables DC Air to move from a virtual airlines which it must remain until the United/US Airways merger is approved, to a fully operational airline serving some 45 communities from Washington National Airport overnight. It ensures that the commitment which DC Air has made to uninterrupted service to these communities will be kept. On a personal note, I am honored to support this endeavor by Bob Johnson. Bob has made significant contributions to the African-American community and our country. I enthusiastically welcome his entry into the aviation industry for three reasons: First, as a businessman, Bob has successfully demonstrated time-and-again, that he can efficiently and effectively manage an organization from the ground-up.

Secondly, Bob Johnson is a man of the highest character and integrity. He would be a welcome addition to an industry that once-upon-a-time, not too long ago, was represented by two individuals whom I believe have the lowest of character and no integrity. Two individuals who intentionally bankrupted successful companies for their own personal gain. As many of you know, I am speaking of Carl Icahn and Frank Lorenzo. And finally, this transaction represents the first minority-ownership of an airline in 30 years.

Mr. Chairman, let me conclude by again thanking you for the opportunity to testify. I hope that this distinguished committee sees the many public interest benefits of the United-US Airways, American-TWA, as well as the DC Air transaction. Fostering an environment that allows low-cost carriers such as Southwest, Jet Blue, DC Air and others to grow alongside the global network, full-service major airlines is the best means to encourage competition and affordable air travel.