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Klobuchar Calls for Comprehensive Review of Airline Competition in Northwest-Delta Merger

Demands that regulators look out for consumers' bottom line

April 24, 2008

Washington, D.C. – Testifying today before the Senate Antitrust Subcommittee, U.S. Senator Amy Klobuchar said federal regulators must give a tough and comprehensive review to the proposed Delta-Northwest merger, including an assessment of its impact on air fares, consumer choice and competition in the entire airline industry.

“Passengers are already concerned about adequate choice and competitive fares. Many airline analysts predict that a Delta-Northwest merger would trigger a new wave of consolidation in the airline industry that would further increase market concentration,’’ Klobuchar said. “I understand that CEOs have to look out for their bottom lines, but it’s my job to protect the bottom lines of consumers and our state.’’

Klobuchar told the Antitrust Subcommittee that the Departments of Justice and Transportation should not review the Northwest-Delta merger in a vacuum, but must consider the potential ripple effects across the airline industry. Published reports have said that United Airlines is considering a merger with Continental Airlines, and some analysts predict that the domestic industry could quickly contract to as few as three mega-carriers.

Against that backdrop, Klobuchar said the Departments of Justice and Commerce should consider proposing conditions that would guarantee robust competition and consumer choice if the Northwest-Delta merger goes through.

“It’s important that our Congressional hearings establish a record to make the airlines accountable for the commitments they have made and to create a record for the Department of Justice as it aggressively enforces our nation’s antitrust laws,’’ Klobuchar said.

Klobuchar, a member of the Senate Commerce Committee, announced Wednesday that the committee will conduct its own hearing May 7 to examine the merger and its potential impact on competition, customer service, jobs and Northwest’s Minnesota facilities.

“The people of Minnesota have had a good relationship with Northwest and have come to its assistance more than once in times of financial trouble,’’ Klobuchar added. “I think Northwest has an obligation to hold up its end of the partnership.’’

To listen to an actuality of Senator Klobuchar’s testimony click here.

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