Minnesota Lawmaker Opposes Delta/Northwest Merger Deal | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne 04.16.18

Airborne-UnManned 04.17.18

Airborne 04.18.18

AMA Drone Report 04.19.18

Airborne 04.20.18

Airborne-YouTube

Airborne 04.16.18

Airborne-UnManned 04.17.18

Airborne 04.18.18

AMA Drone Report 04.19.18

Airborne 04.20.18

Thu, Apr 17, 2008

Minnesota Lawmaker Opposes Delta/Northwest Merger Deal

But Others Say Consolidation Could Help Industry

One lawmaker concerned about the effects of a proposed Delta/Northwest merger on his home district happens to be -- unfortunately for merger proponents -- the chairman of the House Transportation and Infrastructure Committee.

Minnesota Congressman James Oberstar said Tuesday he'll try to persuade the Justice Department's Antitrust Division to kill the deal, saying it would crush competition.

Apparently not at all shy about using hyperbole, he calls the merger "the worst development in aviation history," stating the formation of a mega-airline would result in an environment in which "the so-called low-fare carriers will not be able to compete."

Oberstar's state includes Northwest's current headquarters in Minneapolis. The combined carrier would be headquartered in Atlanta, GA. If he's trying to claim that shift makes this "the worst development in aviation history," he may not get much backup from his colleagues.

Cox News Service reports Georgia Senator Johnny Isakson -- who, perhaps not surprisingly, strongly supports the merger -- predicted that despite local concerns about job losses, most members of Congress will support the merger because they fear spreading bankruptcies.

"The aviation industry is under huge stress," Isakson said, adding consolidation could ease pressure. That view was generally echoed by the likes of Pennsylvania Arlen Specter, who said upcoming anti-trust decisions on the merger "will depend on the underlying economic facts" of the airline business.

"This is a troubled industry," he added.

One of Oberstar's colleagues from Minnesota, Senator Amy Klobuchar, plans a hearing in the immediate future with Delta CEO Richard Anderson, and Northwest CEO Doug Steenland. "I will hold their feet to the fire to live up to their commitments and show that any merger is, in fact, in the best interest of Main Street and not just Wall Street," she said.

It appears the looming debate among lawmakers will pit provincial interests such as Oberstar's against a much larger faction... which does not want to face pressures to bail out the aviation industry with taxpayer money in years to come.

FMI: www.newglobalairline.com, www.house.gov/oberstar/

Advertisement

More News

Rotax Receives Award At AERO Friedrichshafen

Recognized As 'Best Drive Train' By The German Aviation Magazine 'aerokurier' BRP-Rotax aircraft engines have named "Best Powertrain" by German aviation magazine ‘aerokurier&>[...]

FAA To Issue AD For CFM56-7B Fan Blades

Engine Type That Powered Southwest 737 Involved In Uncontained Engine Failure The FAA will issue an Airworthiness Directive (AD) within the next two weeks that will require inspect>[...]

Airborne-Unmanned 04.17.18: XPO 2018, Drone Broadcasts, Airbus Inspection Drone

Also: NZ AFB Drone Incident, Police UAVs, Inaugural Drone Boot Camp, Predator 5M Flight Hours This is it! THE major unmanned exposition of the year -- AUVSI XPONENTIAL 2018 starts >[...]

AMA Drone Report 04.19.18: AMA Leadership, FAA Reauthorization, Coachella

Also: New French Regs, Drone Boot Camp, Public Safety Drone Standards, DroneShield Protects NASCAR It’s a little bit sad and yet a bit cool to see AMA make an exciting change>[...]

Airborne 04.20.18: Continental Jet-A Seminole, SWA Fallout, NYC NIMBY's Helo's

Also: Teamsters Talk Allegiant, Coleman Young Airport, Miracle Flights, IN Av Repair Biz Cleared Piper has selected the Continental Motors CD-170 compression ignition engine fueled>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2018 Web Development & Design by Pauli Systems, LC