Future of Airline Industry Discussed at Chamber Summit

The heads of two U.S. airlines clashed over whether the industry should consolidate to counter soaring costs and stiffer competition during separate speeches at the U.S. Chamber of Commerce’s annual aviation summit on April 3.

Glenn F. Tilton, chairman, president and CEO of United Airlines and its parent company UAL Corp.,, said that “consolidation makes sense,” particularly when foreign carriers are actively merging their assets. “Airlines are playing a vital role in creating a flatter world,” Tilton told an audience of 175 government and business representatives.

David Barger, CEO of JetBlue Airways Corp., disagreed, saying that his company would pursue “partnerships” with foreign carriers rather than mergers. “We’re in charge of our future. We’ve got to make sure we’re making long-term decisions,” he said. Barger also said he supports allowing greater foreign investment in the U.S. airline industry.. German carrier Deutsche Lufthansa AG paid $300 million for a 19% stake in JetBlue in December.

Tilton and Barger did agree, however, on the challenges facing their industry, including rising oil prices, lower fares, and more low-cost and foreign carriers in the marketplace.

The National Chamber Foundation’s (NCF) summit, “Aviation’s New Flight Plan: Innovation, Adaptation, and Consolidation," focused on the political, economic, and technological issues facing the aviation industry..
 
NCF is the U.S. Chamber's independent, nonprofit public policy think tank.

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