General Lee
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Delta talks worry Congress
BY MALIA RULON | [email protected]
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WASHINGTON – A merger between Delta Air Lines and either Northwest Airlines or United Airlines hasn’t even been announced, but talk is already starting to swirl around Capitol Hill.
Lawmakers don’t officially have a role in the regulatory process concerning mergers – that is handled by the Justice Department’s Antitrust Division.
But the House and Senate Judiciary committees have oversight of the Justice Department, giving them the ability to investigate and examine any proposed deals or antitrust issues. In that capacity, their opinion can influence financial backers and thus have a big effect on whether the deal moves forward.
House Judiciary Chairman John Conyers, D-Mich., and Rep. Jerry F. Costello, D-Ill., chairman of the aviation subcommittee, are reportedly considering hearings – if or when a merger is announced. Rep. John Mica of Florida, the top Republican on the House Transportation and Infrastructure Committee also said publicly that he wants hearings on any proposed deal.
Meanwhile, Greater Cincinnati and Northern Kentucky’s lawmakers are bracing for the fight.
Delta has a hub at the Cincinnati/Northern Kentucky International Airport in Hebron, so hundreds, if not thousands, of jobs could be on the line should the airline merge with another carrier and decide to close or shrink the hub.
“I just could never support a merger that would dramatically hurt Cincinnati,” said Rep. Jean Schmidt, a Miami Township Republican who is a member of the transportation committee.
Schmidt said she would “work against” any merger that would harm Greater Cincinnati, adding that she would support having hearings on both a possible merger and the broader issue of airline consolidation.
“I support a free market approach but only one that will lead to the best services,” she said.
At issue is whether a Delta merger with another large airline would spur the nation’s other large carriers – American Airlines, US Airways and Continental – to also form mergers to stay competitive, a scenario that could result in fewer airlines.
“There certainly are concerns about consolidation of the airline industry and the impact that could have on competition,” said Rep. Steve Chabot, a Westwood Republican who is a member of the House Judiciary Committee’s antitrust task force.
“My principle concern would be what impact a merger would have on consumers and the marketplace,” Chabot said, adding that he’s not “unalterably opposed to it.”
Rep. Geoff Davis isn’t on the transportation or judiciary committees, but he still has a big interest in whether the rumored merger moves forward. The airport is in his district.
Last week, the Hebron Republican released a public statement about the reported merger talks, describing how last year he worked with Delta employees nationwide to defeat a hostile takeover bid by US Airways.
“The entire Delta community and I opposed that takeover bid because of the negative impact it would have had on fares, service, jobs and the local economy of communities across the country, especially our own,” Davis said. “Any potential merger should undergo the same thoughtful scrutiny as the US Airways proposal.”
The U.S. Senate Committee on Commerce, Science and Transportation held a hearing last year on the US Airways takeover that attracted a standing-room-only crowd and showcased questions from concerned lawmakers of both parties.
So far, Ohio’s two senators aren’t convinced that this time should be any different.
“I talk with Delta employees and management all the time and I have yet to hear anyone make an argument that a merger would be good for Ohio,” said Sen. Sherrod Brown, a Democrat from Lorain in northern Ohio.
Brown added: “I will fight any deal that costs jobs or service to Cincinnati and the rest of Ohio.”
A spokesman for Sen. George Voinovich said the Cleveland Republican is concerned about the local economic impact a merger would have on Greater Cincinnati.
“He is writing a letter to Delta asking them to keep in mind the critical importance of this hub on the economic well-being of the region,” spokesman Chris Paulitz said.
Bye Bye--General Lee
BY MALIA RULON | [email protected]
E-mail | Print | digg us! | del.icio.us! | Click-2-Listen
WASHINGTON – A merger between Delta Air Lines and either Northwest Airlines or United Airlines hasn’t even been announced, but talk is already starting to swirl around Capitol Hill.
Lawmakers don’t officially have a role in the regulatory process concerning mergers – that is handled by the Justice Department’s Antitrust Division.
But the House and Senate Judiciary committees have oversight of the Justice Department, giving them the ability to investigate and examine any proposed deals or antitrust issues. In that capacity, their opinion can influence financial backers and thus have a big effect on whether the deal moves forward.
House Judiciary Chairman John Conyers, D-Mich., and Rep. Jerry F. Costello, D-Ill., chairman of the aviation subcommittee, are reportedly considering hearings – if or when a merger is announced. Rep. John Mica of Florida, the top Republican on the House Transportation and Infrastructure Committee also said publicly that he wants hearings on any proposed deal.
Meanwhile, Greater Cincinnati and Northern Kentucky’s lawmakers are bracing for the fight.
Delta has a hub at the Cincinnati/Northern Kentucky International Airport in Hebron, so hundreds, if not thousands, of jobs could be on the line should the airline merge with another carrier and decide to close or shrink the hub.
“I just could never support a merger that would dramatically hurt Cincinnati,” said Rep. Jean Schmidt, a Miami Township Republican who is a member of the transportation committee.
Schmidt said she would “work against” any merger that would harm Greater Cincinnati, adding that she would support having hearings on both a possible merger and the broader issue of airline consolidation.
“I support a free market approach but only one that will lead to the best services,” she said.
At issue is whether a Delta merger with another large airline would spur the nation’s other large carriers – American Airlines, US Airways and Continental – to also form mergers to stay competitive, a scenario that could result in fewer airlines.
“There certainly are concerns about consolidation of the airline industry and the impact that could have on competition,” said Rep. Steve Chabot, a Westwood Republican who is a member of the House Judiciary Committee’s antitrust task force.
“My principle concern would be what impact a merger would have on consumers and the marketplace,” Chabot said, adding that he’s not “unalterably opposed to it.”
Rep. Geoff Davis isn’t on the transportation or judiciary committees, but he still has a big interest in whether the rumored merger moves forward. The airport is in his district.
Last week, the Hebron Republican released a public statement about the reported merger talks, describing how last year he worked with Delta employees nationwide to defeat a hostile takeover bid by US Airways.
“The entire Delta community and I opposed that takeover bid because of the negative impact it would have had on fares, service, jobs and the local economy of communities across the country, especially our own,” Davis said. “Any potential merger should undergo the same thoughtful scrutiny as the US Airways proposal.”
The U.S. Senate Committee on Commerce, Science and Transportation held a hearing last year on the US Airways takeover that attracted a standing-room-only crowd and showcased questions from concerned lawmakers of both parties.
So far, Ohio’s two senators aren’t convinced that this time should be any different.
“I talk with Delta employees and management all the time and I have yet to hear anyone make an argument that a merger would be good for Ohio,” said Sen. Sherrod Brown, a Democrat from Lorain in northern Ohio.
Brown added: “I will fight any deal that costs jobs or service to Cincinnati and the rest of Ohio.”
A spokesman for Sen. George Voinovich said the Cleveland Republican is concerned about the local economic impact a merger would have on Greater Cincinnati.
“He is writing a letter to Delta asking them to keep in mind the critical importance of this hub on the economic well-being of the region,” spokesman Chris Paulitz said.
Bye Bye--General Lee
