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Jamie Dupree

Congress Vents Hot Air Over Airline Merger

By
Jamie Dupree
@ April 16, 2008 12:00 AM
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The initial reactions in the halls of Congress to the merger of Delta and Northwest Airlines was not overly positive.  But then again, those opinions might not matter too much.

While Big Mergers are of big interest to lawmakers, there really isn't much they can do to stop something like the Delta-Northwest combo airline.

That power is in the hands of the Justice Department, which must approve such deals under the auspices of federal anti-trust laws.

There's no mention in there of the Congress.

But lamwakers will try to act the part, as they demanded answers and vowed to set hearings with the Delta and Northwest CEO's to see whether consumers are getting the shaft.

"We will give this proposal rigorous scrutiny," said House Transportation Committee Chairman Jim Oberstar (D-MN.)

Hearings are also likely in the Senate, but no one was talking about finding some legislative way to block the deal.  Instead, Oberstar and others warned that this merger would most likely result in other deals as well.

The first hearing will come next week before the House Judiciary Committee.  That's only the start of a series of hearings which lawmakers will use to set out a record on the proposed merger.

 

 



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