Utah legislative leaders on Wednesday joined the chorus of voices worried about a proposed merger between Delta Airlines and US Airways.
A letter calling for "a very meticulous review" of the deal was sent to U.S. Attorney General Alberto Gonzales from state House Speaker Greg Curtis, R-Sandy; Senate President John Valentine, R-Orem; House Minority Leader Ralph Becker, D-Salt Lake City; and Senate Minority Leader Mike Dmitrich, D-Price.
"This is a major concern to us as policymakers for the state of Utah," Valentine said. "We know we're going to have an economic impact if there is a merger."
US Airways proposed an $8.7 billion takeover of Delta in November. Delta has been in bankruptcy proceedings since September 2005, but the airline's executives have said they're not interested in a merger. Delta expects to emerge from bankruptcy next year.
Many of Utah's leaders, including Congressmen Chris Cannon and Rob Bishop, have rallied behind Delta, which operates a large hub at Salt Lake City International Airport.
The four state lawmakers touted the hub in remarks announcing the letter.
"Delta has been very good to the state of Utah, and the state of Utah has been very good for Delta," Dmitrich said. "It's been a good marriage."
Added Curtis: "The value of having a hub in Salt Lake City cannot be overstated."
US Airways officials have said they will maintain the hub if the merger takes place, but Valentine noted that the airline already has hubs in Phoenix and Las Vegas.
"It seems risky to assume that a major airline is going to have three hubs in that proximity," he said.
The loss of a Salt Lake City hub could mean fewer flights, fewer nonstop flights, reduced airline choices and increased inconvenience for business travelers and tourists, "which are vital to the economies of the West," the letter states.
"These and other potential risks could result in significant anti-competitive consequences such as higher prices, less available travel and less consumer choice into and out of Utah," the letter continues.
It's the potential for a merger to reduce competition that prompted them to call on the Department of Justice to "review with great care the potential impacts of any merger," Curtis and Valentine said.
Curtis also said they are not asking for new regulations -- just a close look at the implications using the existing anti-trust framework.
"We're just trying to make sure that there's a heightened awareness," Curtis said.
This story appeared in The Daily Herald on page C1.
Posted in Local on Wednesday, December 13, 2006 11:00 pm
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