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Klobuchar calls on Delta, Northwest Airlines to put Main Street Before Wall Street in Merger Deal

Klobuchar will expedite Senate hearing to "hold airlines accountable" for effects of proposed merger on consumers, workers, and the economy

April 14, 2008

Washington, D.C. – Saying she will “hold their feet to the fire” in Congressional hearings, U.S. Senator Amy Klobuchar tonight called on the leaders of Northwest and Delta Airlines to demonstrate that their proposed airline merger will serve the best interests of consumers, workers and local communities.  Klobuchar announced that the Senate Commerce Committee will hold a hearing promptly to investigate the potential impact of the merger.
 
“Today’s merger announcement is not just about Wall Street,” said Klobuchar.  “It’s also about Main Street, including the best interests of our consumers, workers and local communities.”
 
Klobuchar serves on the Commerce Committee, which has oversight authority over the airline industry.  She said she expects the Committee will hear directly from Delta CEO Richard Anderson and Northwest CEO Doug Steenland, among other witnesses.
 
In January, Klobuchar wrote to both CEOs expressing her concerns about a possible merger.  In response, the CEOs promised they would take into consideration Minnesota’s employment concerns.  They wrote that benefits of any merger “would be achieved through service improvements and greater efficiency, not by fare increases, schedule reductions or layoffs.”
 
“I will hold their feet to the fire to live up to their commitments and show that any merger is, in fact, in the best interest of Main Street and not just Wall Street,” said Klobuchar.
 
Klobuchar said her focus will be to hold the airlines accountable for the effects of a combined “mega-airline” on the economies of Minnesota and the nation. 
 
“In the interest of consumers, Congress must exercise its oversight of the proposed merger,” said Klobuchar.  “I want specific answers from the airlines, not just general assurances.  My focus will be on whether any merger meets the needs of consumers, business and employees.”
 
Noting that Minnesota is ninth in the nation for Fortune 500 companies, Klobuchar added:  “Minnesota’s economy is particularly tied to Northwest’s success – from the thousands across our state employed by the airline to the businesses and flying public who depend on it as a link to the world.  It is incumbent upon our Committee, and upon the Department of Justice in their antitrust review, to seriously consider potential impact on the economy of our state and nation, its affect on consumers across the country, and the prospects for competition in the airline industry.”
 
In evaluating the merger proposal, Klobuchar will continue to demand answers to specific questions, including:
 
• Will the combined airline preserve jobs for Minnesotans?
• Will it maintain the Minneapolis-St. Paul International Airport (MSP) as a vital and integral hub in the new airline’s route system?
• Will the combined airline reduce, increase or eliminate flights to Minnesota communities?
• Will it retain the Chisholm and Twin Cities reservation centers, as well as the Eagan training facility?
• Will consumer choice be protected so the proposed merger does not result in diminished service and higher fares?
• What assurances are there that the merger will preserve and enhance long-term airline competition? 
 
“The executives of these airlines have said that a merger will serve the broad public interest, preserving jobs, competition and high quality airline service,” said Klobuchar. “I intend to see that they live up to those promises.”

Klobuchar spoke with both Steenland and Anderson in advance of tonight’s announcement, and stressed the importance of maintaining jobs and consumer choice.
 
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