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Delta talks worry lawmakers

January 30, 2008 in Main Page | No comments

The Enquirer reports on lawmakers’ reaction to the Delta merger talks.

WASHINGTON - A merger between Delta Air Lines and either Northwest Airlines or United Airlines hasn’t even been announced, but talk is already starting to swirl around Capitol Hill.

Lawmakers don’t officially have a role in the regulatory process concerning mergers - that is handled by the Justice Department’s Antitrust Division.

But the House and Senate Judiciary committees have oversight of the Justice Department, giving them the ability to investigate and examine any proposed deals or antitrust issues. In that capacity, their opinion can influence financial backers and thus have a big effect on whether the deal moves forward.

House Judiciary Chairman John Conyers, D-Mich., and Rep. Jerry F. Costello, D-Ill., chairman of the aviation subcommittee, are said to be considering hearings - if or when a merger is announced. Rep. John Mica of Florida, the top Republican on the House Transportation and Infrastructure Committee also wants hearings on any proposed deal.

Meanwhile, Greater Cincinnati and Northern Kentucky’s lawmakers are bracing for a fight.

…

Rep. Geoff Davis isn’t on the Transportation or Judiciary committees, but has a big interest in a potential merger since the airport is in his district.

Last week, the Hebron Republican released a public statement about the reported merger talks, describing how last year he worked with Delta employees to defeat a hostile takeover bid by US Airways. “Any potential merger should undergo the same thoughtful scrutiny as the US Airways proposal,” he said.

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