Press Release Wednesday, May 24, 2000

David Butler or Mark Silbergeld (202) 462-6262 Consumers Union Washington, DC Office

WASHINGTON, D.C. -- Consumers Union, the publisher of Consumer Reports magazine and Consumer Reports Travel Letter, today asked the Department of Justice to conduct a "painstaking review" of the proposed merger of United Airlines, the world's largest airline, and US Airways.

"In a business that is already far from competitive in terms of both structure and conduct, this merger presents an enormous potential for even less competition," said Mark Silbergeld, co-director of Consumers Union's Washington DC office.

In a letter to Joel Klein, assistant attorney general and head of the department's antittrust division, Silbergeld said that the proposal raises concerns about the merged company's ability to dominate over its competitors at hub airports and along certain routes. Unless these and other competition issues are resolved, Silbergeld said the government should reject the merger "as contrary to the consumer interest in lower prices, better service, and more choices."

Failure to address these issues could leave consumers with "a reduction in price competition and passenger service from an already unsatisfactory situation," Silbergeld wrote.

United announced May 23 that it had agreed to acquire US Airways, the biggest carrier in the Northeast, for $4.3 billion.

Consumers Union, publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumers. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers.