Delta CFO Tells Minnesota Lawmakers HQ Decision Final | 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

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 05.23.16

Airborne 05.24.16

Airborne 05.25.16

Airborne 05.26.16

Airborne 05.27.16

Airborne Hi-Def On YouTube

Airborne 05.23.16

Airborne 05.24.16

Airborne 05.25.16

Airborne 05.26.16

Airborne 05.27.16

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

Thu, May 08, 2008

Delta CFO Tells Minnesota Lawmakers HQ Decision Final

Remains Mum On Merger's Impact On Jobs

Despite much hand-wringing and suggestions of economic incentives, Minnesota lawmakers have not been able to convince a merged Delta and Northwest to keep the combined airline's headquarters in Eagan. Even more frustrating, they haven't been able to find out how many jobs will disappear in the merger... or even find out when they'll find out.

The Associated Press reports Ed Bastian, Delta's president and chief financial officer, told lawmakers in separate state House and Senate hearings that while the headquarters will be in Atlanta, the Minneapolis-St. Paul Airport will remain a hub. He said there will be no involuntary reduction of "front line" Northwest customer service employees.

In response, lawmakers repeatedly -- and unsuccessfully -- pestered Bastian for more details about how many jobs at headquarters would be lost and what other Northwest divisions might be closed entirely. All Bastian would tell them was, "We are early in the process of determining what corporate activities will be combined and how they will be combined. Some of that work will be done in Minnesota, some of that work will be done in Atlanta. We're early in the process."

There's more at stake than the idle curiosity of state legislators. Under financial agreements between Northwest and Minnesota dating to 1992, the carrier could forfeit more than 200-million dollars in bond debt issued by the Metropolitan Airports Commission, and another 200-million in airport rent concessions, if it fails to keep its headquarters, a hub, and a certain minimum number of employees in Minnesota through 2020.

Bastian says the company will negotiate its way out of the headquarters requirement with Governor Tim Pawlenty's office in exchange for maintaining some number of jobs and a hub in the Twin Cities, but says the airline will buy its way out of the deal if necessary. He hinted that if it comes to a buyout, all bets are off.

"I don't know if that's in anyone's best interests at this point," he said.

Steve Gordon, president of the International Association of Machinists union which represents Northwest ground workers, predicted the merger will have a major impact. "I think people need to start realizing this is going to have grave effects on the communities where Northwest employees live," Gordon said. "Not just on the employees -- on the communities."

FMI: www.newglobalairline.com

Advertisement

More News

Airborne 05.27.16: More MH370 Debris, Airport 4 Sale, Hurricane Hunters

Also: PWC PW307D, Icon Scandal, Memorial Day, IASO, Nat'l Warplane Museum, Gogo Cloud, Orbital ATK, Honor Flight Austin The Australia's Minister for Infrastructure and Transport, D>[...]

Airborne 05.26.16: Icon Flaming Out, Airbus Heli-Patent, UAV Registry

Also: TSA Dust-Up, Honor Flight, The API -- What’s This ALL About?, EASA Cert's G650ER, First E190-E2, DiCaprio BizJet, WingX Pro7, BASE Jump Tragedy Late Wednesday, Icon fin>[...]

ANN's Daily Aero-Linx (05.28.16)

Open or Close an Airport or Runway Before opening or closing an airport or runway, airport sponsors should find out the necessary steps and contact their nearest FAA District or Re>[...]

ANN's Daily Aero-Term (05.28.16): Runway Entrance Lights (REL)

An array of red lights which include the first light at the hold line followed by a series of evenly spaced lights to the runway edge aligned with the taxiway centerline.>[...]

Aero-News: Quote Of The Day (05.28.16)

“This is an important outreach mission to educate the public, especially the children who will take the preparedness message back to their families.” Source: Col. Frank>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC