TESTIMONY OF U.S. SENATOR RICK SANTORUM

BEFORE THE SENATE JUDICIARY COMMITTEE

FEBRUARY 7, 2001



Thank you Chairman Hatch, Senator Leahy and members of the committee. I appreciate the opportunity to submit testimony today on the impending airline mergers. Last year, I appeared before the Antitrust, Business Rights, and Competition to express my concerns regarding the effect of this merger on my constituents. I have also joined Senator Specter at a subcommittee field hearing in Pittsburgh further investigating the specifics of the proposal. Finally, I submitted written testimony for the Senate Commerce Committee’s hearing last week on this subject. In each of these instances, I have expressed my particular interest in how the United-US Airways merger relates to jobs and services for my constituents and how they impact competition in the airline industry.

I made it clear when the United-US Airways merger was first announced that to gain my support the airlines had to address my two principal concerns -- protecting existing jobs in my state and continuing plans to build a new maintenance facility in Pittsburgh. Since that time, I have received commitments from both United Airlines Chairman Jim Goodwin and US Airways Chairman Stephen Wolf that these concerns would be addressed.

In particular, I was very pleased that United Airlines committed to the long-planned expansion of the maintenance facility in Allegheny County. As one of the largest employers of Southwestern Pennsylvania, this project is critical to the economic well-being of the region and to the thousands of maintenance workers that depend on these jobs to support their families.

I have also heard from many of the small regional airports in Pennsylvania who are concerned that this merger threatens commercial air service to their facility. However, I am heartened by Jim Goodwin’s commitment to continue providing the best small community air service possible. I appreciate Mr. Goodwin’s recognition that these airports are economic development engines for their rural communities, and I will hold him to his commitment.

I understand that there are still critics of the United-US Airways merger, but I respectfully request that you consider the alternative. Just a few weeks ago, US Airways reported that high fuel prices and expanding low-cost and network carrier competition combined to produce disappointing financial results for the company -- a net loss of $269 million for the year 2000. Absent this merger, US Airways would be in dire financial straits and jobs at US Airways would be in jeopardy. Previous air carriers didn’t have the opportunity that US Airways has today. Consider the employees of Pan Am, Eastern and Braniff and how the states where they operated have been impacted.

The status quo is not an option for US Airways. Without the merger to preserve US Airways’ service network, the future of air service to Pittsburgh, Philadelphia and smaller communities across my state is in doubt. The merger would not only ensure but expand service to and from the Commonwealth of Pennsylvania.

Thank you, Mr. Chairman.