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Senator Klobuchar Urges Commerce Committee to Examine Impact of Possible Northwest Airlines Merger

Klobuchar underscores the Airline's regional significance for creating economic growth and jobs

January 18, 2008

Washington, D.C. – U.S. Senator Amy Klobuchar sent a letter to the Chairman and Ranking Members of both the Senate Commerce Committee and the Subcommittee on Aviation Operations, Safety, and Security urging them to promptly schedule hearings examining the potential impacts on competition, pricing and quality of service that a possible Northwest Airlines merger could have on Minnesota’s economy. 

Klobuchar also underscored the significance of Northwest in creating jobs and economic growth and has previously stated that any possible merger “must be examined carefully and thoroughly with an eye towards ensuring that the economic health of our state and its workers is not jeopardized.”

Early last year, Senator Klobuchar played an active role in the Senate Commerce Committee’s hearings regarding the possible merger of U.S. Airways and Delta.

The full text of Klobuchar’s letter is below:

The Honorable Daniel K. Inouye                                  
Chairman    
Committee on Commerce, Science, and Transportation                                                                                             United States Senate
Washington, DC 20510

The Honorable Ted Stevens
Vice Chairman
Committee on Commerce, Science, and Transportation                                                                                             United States Senate
Washington, DC 20510

The Honorable Jay Rockefeller     
Chairman, Aviation Subcommittee   
Committee on Commerce, Science, and Transportation                                                                                             United States Senate
Washington, DC 20510

The Honorable Kay Bailey Hutchison
Ranking Member, Aviation Subcommittee
Committee on Commerce, Science, and Transportation                                                                                               United States Senate
Washington, DC 20510

Dear Chairman Inouye, Vice Chairman Stevens, Chairman Rockefeller, and Ranking Member Hutchison:

This week, we learned that Delta Air Lines has entered into formal merger discussions with Minnesota-based Northwest Airlines and Illinois-based United Airlines.  As a member of the Commerce Committee, I write to recommend that we investigate airline consolidation and schedule timely hearings on the potential impact that consolidation would have on air travel in our country.  It is a matter of public interest that we ensure competition in air travel and promote fairly-priced, quality service for passengers.

I support a strong, competitive and financially-sound U.S. airline industry.  However, I am concerned that potential mergers could lead to diminished commercial air service.  In addition, a reduction in air service could have an impact on the economies of smaller communities across our country.  Finally, there are very real concerns that a Delta merger could trigger even further airline consolidation.
 
I am very focused on the specific impact that a Delta-Northwest merger could have on my home state of Minnesota.  Hundreds of thousands of Minnesotans rely upon Northwest for national and international travel each year.  Northwest Airlines is also a driving force in Minnesota’s economy.  It directly provides jobs and economic development, from its headquarters in Eagan to its reservations center in Chisholm.  Northwest’s air service is also key to the economic vitality of regional centers like Duluth, Rochester, Moorhead and the Iron Range.  Minnesota’s position as a hub for Northwest contributes to the success of many Minnesota businesses, large and small alike.  Indeed, visitors to world-famous Minnesota institutions – such as the Mayo Clinic and the Mall of America – rely, in no small part, on Northwest Airlines. 

In short, Northwest serves as a vital lifeline for the people and businesses of Minnesota.  This is why I am concerned about the competitive impact of airline mergers, and why I want to further examine consolidation in the U.S. airline industry.   I understand that the U.S. Departments of Justice and Transportation will conduct an antitrust review of any proposed merger.  But I believe our Committee should also examine the impact on American consumers and our economy.

I appreciate that you share my concerns about this merger, and about airline consolidation in general.  Given the competitive interests at stake, I urge you to schedule hearings, and thank you for your attention to this important matter.

 
Sincerely,
 

/s

 
Amy Klobuchar

U.S. Senator
 

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