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Lawmakers oppose airline merger

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Nine state legislators have written to South Carolina's congressional delegation to oppose US Airways' hostile takeover bid of Delta, arguing such a merger would affect tourism by reducing flights and raising prices.

• Photo: A US Airways Express plane sits on the runway at HIlton Head Island Airport. Lawmakers representing Hilton Head Island say the airline's proposed takeover of Delta will have little effect on the area.
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But legislators representing Hilton Head Island and Bluffton say the proposed $10.3 billion takeover of the airline, which is in Chapter 11 bankruptcy, would have little effect on Hilton Head, even though Delta is poised to join US Airways in March as the only airlines flying to the island.

"Obviously, if there's a market for Delta to come in, which I think there probably is, I think the additional flights would continue," said state Rep. Richard Chalk, R-Hilton Head, who speculated that a combined airline could still use two southern hubs, Atlanta and Charlotte.

Rep. Bill Herbkersman, R-Bluffton, said he is opposed to legislators interfering with the marketplace, and such a complex one at that.

"If they can combine routes and fill them up and become solvent again, that's the best thing that could happen to the tourist areas," he said.

John Curry, a member of the county Aviation Board, said Hilton Head is in an ideal situation, aside from the proposed hostile takeover, having multiple airlines for the first time since the mid-1990s.

"I guess we're hopeful that the merger doesn't take place," he said. "I think we're quite comfortable with US Air staying here ... for the foreseeable future and with (Delta) beginning their service in March."

In the letter to Congress, the authors argue South Carolina's already limited amount of airline competition would take a hit, leaving US Airways with powerful pricing control.

"We want these two companies

to continue to remain independent because we believe the element of competition is necessary to ensure lower ticket prices," the lawmakers wrote.

Members of the congressional delegation contacted about the letter said they hadn't seen it and couldn't comment until they did.

In addition to leaving US Airways the lone carrier on Hilton Head, the merger would create a monopoly in Florence, and mean that nearly 60 percent of seats in Myrtle Beach, Columbia and Greenville/Spartanburg; 65 percent in Savannah; and 70 percent in Charleston would belong to the new airline, according to Delta statistics.

US Airways spokesman Phil Gee said a 2005 merger with America West actually lowered fares in many markets, though flight capacity was reduced 15 percent.

If the merger is accepted by a council of Delta's creditors, Gee said US Airways would eliminate another 10 percent of its flight capacity by closing unprofitable routes and combining others. He said it's unclear how Hilton Head would be affected, but said no existing service would be discontinued.

Delta has been in talks with Northwest Airlines about a possible merger if both emerge from bankruptcy, The Wall Street Journal reported, using unnamed sources.

The consolidation of any major airline would have to withstand a federal antitrust review.