Feb 18, 2008 6:07 pm US/Central
Political Leaders Urge NWA To Keep Promises To MN
ST. PAUL (AP) ―
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Pawlenty says he's "extremely concerned" about the potential impact of a deal on Minnesota.
CBS
Until Minnesota's political leaders know how much a potential merger of Northwest Airlines and Delta Air Lines could hurt, they can't say whether they will fight it.
What they do know: They want Northwest to live up to its obligations to the state, including agreements to maintain a headquarters and a hub here in exchange for past loans and future airport concessions. And they're worried. That much was clear at a Capitol news conference on Monday.
"It's difficult to respond until we actually see the deal," said Gov. Tim Pawlenty, joined by the four top legislative leaders. "But you can put me down until then as concerned -- very concerned about how this might impact Minnesota, and our position on the merger will depend upon how they treat Minnesota."
Northwest employs 11,500 people in Minnesota, about 1,000 of which are tied to its Eagan headquarters.
Delta is larger than Northwest, and as the dominant partner in a merger might overrule a Minnesota headquarters. Delta's headquarters is in Atlanta.
Pawlenty wouldn't rule out opposing a merger if it's bad for the state.
The Republican governor said another possibility would be to renegotiate the Northwest agreements. He said one scenario would let the headquarters go if the merged airline kept an equivalent number of jobs -- or more -- in the state. Cargo operations and information technology stand out as potential strengths.
But any new talks on the agreements, worth a combined total of $445 million, would depend on how favorable the terms were for Minnesota, he said. Pawlenty said he has offered more concessions to keep a strong position under a merger, but the airlines can't respond to those offers until a merger is announced.
"Hub" is defined in the agreements as a certain amount of Northwest airplane traffic in and out of the Minneapolis-St. Paul International Airport. Pawlenty said the hub is profitable and will probably stay.
Legislative leaders voiced similar fears, including the impact of a merger on service to Rochester and other feeder airports. Senate Majority Leader Larry Pogemiller alluded to past state help for the airline.
"Northwest Airlines has been an excellent company for Minnesota, and Minnesota has been excellent to Northwest Airlines," said Pogemiller, DFL-Minneapolis.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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