Executives from American Airlines and US Airways testified on Capitol Hill Tuesday in a push to get federal approval to merge.

American CEO Tom Horton and his US Airways counterpart Doug Parker maintain that when they operate under a single name...

  • passengers will have better service
  • employees will receive better pay, benefits and more job security

Consumer groups warn, however, that small airports will see service cuts and passengers will pay higher fares.

They also worry about the effect on low-cost competitors.

"Airline passengers want broader networks capable of getting them to more places, more efficiently," Parker argued. "In response to that demand, Delta merged with Northwest; United merged with Continental; Southwest responded to the same consumer demands when they acquired Airtran."

If it is approved, the American-US Airways merger would be completed after American emerges from bankruptcy in the third quarter.

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