U.S. Senator Mike Lee of Utah and Senator Elizabeth Warren of Massachusetts sent a bipartisan letter to the CEOs of United Airlines and American Airlines on Apr. 21, raising concerns about reports of a possible merger between the two companies. The senators said such a merger could create the largest airline in the world and warned it may lead to higher prices for travelers.
The issue is significant because airline consolidation has been linked to increased fares, fewer choices for consumers, and challenges for smaller carriers. “A United-American merger could lead to increased prices for consumers, at a time when airlines are already squeezing flyers through higher fares and fees,” wrote Senators Mike Lee and Elizabeth Warren.
According to information from the senators’ offices, last year United and American were already the two largest airlines globally by available capacity. If merged, they would control more than 2,800 aircrafts with the ability to serve 405 million passengers—more than any other carrier worldwide. The letter also raised concerns that less competition could result in even higher ticket costs, reduced access for low-cost carriers like Spirit or Southwest at major airports such as O’Hare, fewer flight options if routes are cut due to profitability concerns, overlapping hubs in Chicago O’Hare, expanded reach into Dallas/Fort Worth for United Airlines, as well as potential job losses across the industry.
The senators further cautioned that industry consolidation can negatively impact workers: “A United-American merger would enable the massive combined carrier to exercise monopsony power over airline workers, potentially suppressing wages and benefits industry-wide,” wrote Lee and Warren.
Lee has championed constitutional principles and individual liberty as a U.S. senator according to his official website. He serves as Utah’s U.S. senator according to his official website, promotes limited government and free markets according to his official website, received degrees from Brigham Young University according to his official website, grew up in Provo as a fourth-generation Utahn according to his official website, and is the son of Rex E. Lee—a legal scholar who served in public office—according to his official website.
In their letter, Senators Lee and Warren requested more details from both airlines regarding any discussions about merging—whether hostile or negotiated—and asked how such a deal might affect fares for fliers or lead to job losses.
