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

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 07.06.15

Airborne 06.30.15

Airborne 07.01.15

Airborne 07.02.15

Airborne 07.03.15

Airborne Hi-Def On YouTube

Airborne 07.06.15

Airborne 06.30.15

Airborne 07.01.15

Airborne 07.02.15

Airborne 07.03.15

 

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

Aero-News: Quote Of The Day (07.06.15)

“Lisa’s contagious passion for reaching the dream of building or restoring an aircraft rubs off on everyone around her... The excitement is easy to enjoy, and has prope>[...]

Aero-TV: An Intro To Quad-Copters – Horizon Hobby Explains A Model Revolution

The Quadcopter Revolution Is In Full Swing... Here's Info On How To Join In! While at eFest 2015, ANN CEO and Editor-In-Chief, Jim Campbell, talks with a company known as Horizon H>[...]

Klyde Morris (07.06.15)

Excuse The Pun... But Klyde Is Clearly Having A Blast -- Pilot Style FMI: www.klydemorris.com>[...]

Airborne 07.03.15: New Trig Avionics, Cargo Biz Grows, iOS GPS Fix

Also: 'No Drone Zone', Aviation v Media, Women's Air Race Classic, Houston Spaceport, Navy's New A/C Launch System, GA Fly Safe, FAA InFO Trig Avionics tells us they are unveiling >[...]

AeroSports Update: Sporty’s Catalog Just Got Bigger

Legend Cub and Sporty's Pilot Shop Partner on Sales and Sweepstakes The American Legend Aircraft Company has announced a twofold partnership with Sporty's Pilot Shop. First, Sporty>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC