Over the last five years, the commercial airline industry has undergone a brutal restructuring that cost hundreds of thousands of airline employees their jobs and their pensions, eliminated and or reduced service to countless small and rural communities, and changed the very nature of the industry. 

 

Just last year, we thought the commercial airline industry had rebounded sufficiently and had undertaken enough structural reforms to weather the next economic downturn.  We were wrong. 

 

The impact of the rising cost of oil barrel threatens the very viability of every airline in this country.   Six carriers have already been pushed into bankruptcy and more teeter on the edge of financial collapse.   

 

I know that many of my colleagues will want to focus exclusively on the pending merger between Delta Air Lines and Northwest Airlines.  But, I do not want us to miss the primary point of this hearing – the financial health of the U.S. aviation industry. 

 

I spoke at great length last week on this issue.  A healthy airline industry is critical to our entire economic future.  And, frankly, too few of us seem not to care.  We are losing our global leadership in aviation – from aerospace research, to air traffic control system development, to market share.  U.S. airlines are fast becoming second tier carriers in the global marketplace. 

 

Over the last two years, I have heard a lot of airline CEOs tell me that they believe the airlines must consolidate to achieve long-term financial viability. 

 

I am not unilaterally opposed to consolidation, as I understand that some consolidation may be necessary to make sure the United States has a financially stable commercial aviation industry.

 

Although consolidation may be necessary to make sure we have a healthy airline industry, I am not convinced that consolidation is sufficient to solve the long-term challenges of the airlines.      

 

Our hearing today will allow us to examine the current financial state of the industry, the steps that the industry and policy makers must take to achieve financial stability in the industry, and the potential impact another round of industry consolidation would have on the industry and the communities and consumers they serve.