US Airlines Urge Govt. To Resist Intervention

The Obama administration should resist any calls to re-regulate or otherwise intervene in airline operations to ensure the industry's viability, major US carriers said Thursday.

The comments came as Transportation Secretary Ray LaHood chaired a conference sought by unions on the competitiveness of an industry that continues to struggle financially after restructuring earlier this decade.

"Our request is to simply let us run our businesses," US Airways CEO Doug Parker said in a letter to LaHood.

Parker's sentiment was mirrored by other airline officials concerned that workers and other groups stung by job cuts, declining service quality, and poor financial performance want government to exercise more muscle.

Some union and congressional officials have raised the possibility of re-regulation 30 years after the government stepped away from that role.

"For those who think re-regulation is the answer, think again -- because our financial situation was no better then," said Peter McDonald, chief administrative officer at United Airlines.

In a letter inviting participants to the conference attended by airline executives, unions, airport officials, lobbyists and analysts, LaHood expressed no view on specific remedies for the industry's ill health but said it was time to discuss the matter.

"The continuing problems facing our airlines have led to restructuring and downsizing, which have weakened both the domestic and global aviation marketplace," LaHood said.

"Without a financially strong aviation industry, we will be unable to compete in domestic and international commerce and also could fall behind in addressing our infrastructure needs," LaHood said. "We must begin this important conversation."

(Reuters)