WASHINGTON - At least two members of the House Transportation and Infrastructure Committee plan to send a letter to Attorney General Michael Mukasey and Transportation Secretary Mary Peters urging them to consider the negative effects on people who rely on air travel before approving any future airline mergers.

The letter, which will essentially oppose airline mergers, could benefit airports because mergers tend to be disruptive to their operations. Mergers also can hurt airport finances because the new combined airline typically reconfigures the service network, potentially causing some airports to lose passengers and the revenue they generate from car rentals and passenger facility charges. PFCs are fees that airports tack on to airfares and use to fund capital projects. They are often used to repay bonds issued by airports to pay for improvements.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.