Printer Friendly

CONTINENTAL CEO TO PRESIDENT CLINTON: DON'T FALL FOR BIG THREE'S COMPLAINTS

 SEATTLE, Feb. 22 /PRNewswire/ -- Continental Airlines Vice Chairman and Chief Executive Officer Robert R. Ferguson III, meeting today with President Clinton and other airline chiefs, said that continued vigorous competition is the best medicine for the aviation industry's ills.
 Ferguson applauded Clinton's personal attention to the issues in light of their deep significance to the overall economic well-being of the country.
 Ferguson said the airline industry is burdened by $6 billion in taxes beyond those paid by other industries, and there is concern about the additional impact of a proposed energy tax on jet fuel. "The one thing that airlines agree on is that overcapacity is the underlying problem impacting airlines today," Ferguson said. "To deal with this, American, United and Delta are trying to force smaller airlines out of business by slashing fares, changing bankruptcy laws, or cutting off access to foreign capital. Now the Big Three are seeking regulatory and legislative solutions that can hurt consumers.
 "Instead of eliminating competition, the Big Three should seriously cut their size to reflect the capacity needs in the marketplace," Ferguson added. "It is, after all, the overly ambitious growth of the Big Three during the last three years that has created the problem."
 Ferguson asserted that the industry's problems have been mischaracterized by the Big Three, and heeding their advice could result in implementation of anti-competitive and anti-consumer measures.
 The three largest airlines, which already control two-thirds of industry capacity owing to their over-aggressive growth, have argued that airlines operating under U.S. bankruptcy laws are damaging their ability to operate profitably.
 Ferguson pointed out, however, that from 1988 to 1992, American, Delta and United grew some 40 percent, compared to flat or negative growth for all the other major carriers combined. The Big Three also distort facts by saying Chapter 11 carriers have triggered the ruinous market economics. Continental's record in the past year alone, for example, is distinguished by leading three successful domestic fare increases, 8 to 10 regional increases and consistently supporting attempted increases by all its competitors. The largest carriers have initiated the most damaging discounting programs.
 -0- 2/22/93
 /CONTACT: Corporate Communications of Continental Airlines, 713-834-5080/


CO: Continental Airlines ST: Washington IN: AIR SU:

JB-LS -- LA034 -- 9157 02/22/93 20:12 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 22, 1993
Words:378
Previous Article:BLACK & DECKER REPORTS 1992 FINANCIAL RESULTS; FILES DEBT SHELF REGISTRATION; DECLARES QUARTERLY DIVIDEND
Next Article:BUILDERS ENDORSE CLINTON ECONOMIC PLAN, URGE ACTION ON LUMBER PRICES
Topics:


Related Articles
AIR CANADA APPOINTS HOLLIS HARRIS VICE CHAIRMAN, PRESIDENT AND CEO
CONTINENTAL AIRLINES LAUDS TRANSPORTATION SECRETARY NOMINEE
CONTINENTAL AIRLINES REFUTES UNITED'S POSITION ON FOREIGN INVESTMENT
CONTINENTAL ANNOUNCES $100 BONUS TO EMPLOYEES FOR FIRST PLACE ON-TIME PERFORMANCE
DELTA'S MISSE CONNECTION.
MAJOR AIRLINES INCREASING FARES IN RESPONSE TO FEDERAL TICKET TAX.
BMI accuses Virgin and BA airlines of 'skywaymanship'.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters