Feb 29, 2008 8:11 pm US/Central
Rep. Oberstar Opposes Possible NWA/Delta Merger
(WCCO)
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"We'll just see how aggressive this Justice Department is in pursuing the public interest," said Oberstar. "If they won't, we will."
CBS
Minnesota Congressman James Oberstar (D), who heads the U.S. House Transportation Committee, weighed in on the merger during a visit to the state capitol Friday.
The Minnesotan who wields some influence over a possible Delta-Northwest merger says he opposes it, and the airlines aren't talking, but chances of consolidation are dwindling.
"Neither Delta nor Northwest has been talking to me since I told them 'hell no,'" said Oberstar.
Oberstar is the powerful chairman of the U.S. House Transportation Committee. He said he's opposed to the Northwest merger because it will lead to more airline mergers, higher fares and service cuts.
"That cascade of mergers would result in three global mega-carriers with worldwide reach and the victims will be air travelers and communities that depend on air service," said Oberstar.
It's possible any airline merger might be decided not just in the corporate board rooms, but in public hearing rooms.
Airline analysts said Northwest and Delta hoped to merge soon, seeking what they believe would be a more favorable ruling from the George Bush administration.
Oberstar suggested Congress could delay the move if regulatory agencies don't give it more scrutiny.
"We'll just see how aggressive this Justice Department is in pursuing the public interest," he said. "If they won't, we will."
Oberstar said he'll begin a series of Northwest-Delta merger hearings in Washington during the next few weeks.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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