Apr 14, 2008 11:30 pm US/Central
Merger Has Yet To Pass Muster With MN Politicians
ST. PAUL (AP) ―
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At the state Capitol, Gov. Tim Pawlenty appeared with his top economic development adviser and airport leaders, vowing to "protect and defend Minnesota's interests" as the merger advances through the regulatory process.
CBS
Minnesota political leaders promised heavy scrutiny of the marriage between Delta Air Lines Inc. and Northwest Airlines Corp., saying jobs and service levels will determine whether they back or oppose it.
Reaction to the proposed deal came swift from St. Paul and Washington.
At the state Capitol, Gov. Tim Pawlenty appeared with his top economic development adviser and airport leaders, vowing to "protect and defend Minnesota's interests" as the merger advances through the regulatory process.
"I want to be clear. We are not signaling support for this merger," he said.
He stressed signed commitments Northwest made to the state to maintain its Twin Cities hub, a certain amount of air traffic and headquarters status. If the proposed merger overlooks those, he said the state could seek quicker repayment of $240 million in outstanding loans and cancel another $200 million in lease breaks spread out over the next two decades.
"I would hope a few hundred million dollars, even to them, would give them pause," the Republican governor said, adding, "In my view, the documents are very clearly written."
Pawlenty spoke by phone with top Northwest and Delta executives. He said they told him to expect more details about commitments the new company could make to the state in coming weeks and months.
For a few years, the Metropolitan Airports Commission has been sketching out what merger scenarios might mean to the state.
"This is an event we haven't been waiting for with anticipation, but it is not one that is totally unexpected," said Jack Lanners, chairman of the Metropolitan Airports Commission. "The Delta-Northwest matchup is on paper one of the better ones for our airport hubbing system."
Lanners said the expectation is that the new company would "maintain a first-class hub facility here."
Both of Minnesota's U.S. senators, Republican Norm Coleman and Democrat Amy Klobuchar, cited the Twin Cities hub and job levels as paramount concerns.
"Today's merger announcement is not just about Wall Street," Klobuchar said. "It's also about Main Street, including the best interests of our consumers, workers and local communities."
Klobuchar, a member of the Senate's Commerce Committee, said she will demand that the U.S. Department of Justice consider the affect of a merger on Minnesota's economy in its antitrust review.
Coleman said he too would view the merger through that realm.
He called the announcement "a reflection of an industry responding to the new economic realities of our time."
If the deal goes through, Minnesota would lose one of its most enduring corporate icons -- a fact not lost on the political leaders.
"That red tail in its various forms over the years is something that has symbolized a great deal of Minnesota's economy," Pawlenty said.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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