Feb 15, 2008 2:41 pm US/Central
Senator Plans Hearing On NWA Merger Talks
ST. PAUL (AP) ―
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Senate President James Metzen said he wouldn't hesitate to use subpoenas to get answers about a potential combination of Northwest Airlines and Delta Air Lines.
CBS
A top state senator said Friday he'd hold a hearing soon into the possible Northwest-Delta merger, ordering high-level Northwest executives to appear if necessary.
Senate President James Metzen said he wouldn't hesitate to use subpoenas to get answers about a potential combination of Northwest Airlines and Delta Air Lines.
"This scares the dickens out of me," he said, noting that 2,300 jobs are tied to Northwest's suburban Twin Cities headquarters. He added, "This thing is steamrolling."
Metzen, a Democrat from South St. Paul, said he'd hold the hearing of the Senate Committee on Business, Industry and Jobs he heads as soon as next week -- "at midnight if we have to" -- although he didn't set a date.
He said U.S. Rep. Jim Oberstar, the chairman of the U.S. House Transportation Committee, plans to testify as well.
A Northwest spokesman had no immediate comment.
Metzen said he wants answers about how a merger would affect the hub status of Minneapolis and the area businesses that depend on the carrier's local presence. He also intends to explore how the state could recoup tens of millions of dollars in previous loans and incentives if Northwest leaves.
Patrick Hogan, a spokesman for the Metropolitan Airports Commission, said Northwest still owes $245 million from a 1992 loan that required the airline to have a hub and headquarters in the state. The debt would be due immediately, rather than by 2022, if Northwest uproots.
Also, Northwest would forfeit more than $200 million in building rental rate cuts and concession rebates it is due to receive through 2020, Hogan said.
House Speaker Margaret Anderson Kelliher, a Minneapolis Democrat, said lawmakers are trying to analyze the potential impact of a merger on jobs, air service and consumer fares. But she acknowledged that they're left "reading between the lines" for now because the carrier has been mostly mum.
"It's difficult for anyone to talk to us about what's going on because of the regulatory status they're in," she said.
Gov. Tim Pawlenty has spoken to Northwest Chief Executive Doug Steenland twice and Delta CEO Richard Anderson once since sending them a letter in January. The Republican governor's spokesman, Brian McClung, said Pawlenty, leading lawmakers and the Minnesota attorney general met this week to discuss strategies for protecting the state's interests in the event of a merger.
"Governor Pawlenty has reminded Northwest of their commitment to maintain the hub and headquarters in Minnesota and we certainly expect them to uphold that obligation," McClung said.
The legislative hearing shouldn't hamper the administration's efforts to keep Northwest, McClung said.
Senate rules permit committees by a two-thirds vote to "require by subpoena or otherwise the attendance and testimony of witnesses and the production of correspondence, books, papers and documents." The Legislature seldom uses subpoenas; failure to comply with one is a misdemeanor offense.
The subjects of subpoenas are typically given a week or more to comply, but state law permits legislators to shorten that window.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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