Let the games begin!

[H46Bubba]

Uh oh! Looks like the obstacle course is being set up already for Richard Anderson.

Delta merger would rouse concern in Congress; Lawmakers don't want base moved
The Atlanta Journal-Constitution
January 13, 2008
One year ago this month, Delta Air Lines then-Chief Executive Gerald Grinstein asked Congress for help in stopping an airline merger.
He insisted that US Airways Group's $9.5 billion offer to acquire his company would harm workers and consumers. Delta should remain "a strong, fiercely competitive, stand-alone airline," he told the Senate Commerce Committee.
Delta's new chief executive Richard Anderson could find himself testifying before Congress too, but this time explaining why a major airline merger would be good for the country.
"If there started to be a wave of mergers, there is going to be congressional interest because smaller communities would not want to lose service," Sen. Johnny Isakson (R-Ga.) said. He predicts lawmakers would look at their home states and wonder: "Am I going to get hurt?"
Numerous news outlets, quoting anonymous sources, said Anderson met with the Atlanta-based company's board Friday, seeking permission to launch formal merger discussions with either Northwest or United airlines. Delta would not comment.
But the very notion of a Delta-initiated merger stirred up Wall Street speculation that the airline industry, plagued by high fuel prices, excess capacity and a slowing U.S. economy, may be ready for a wave of consolidation.
Both the Transportation and Justice departments would have to approve any airline merger. Many Wall Street analysts have said carriers likely would want to push forward with deals soon, hoping to get them approved this year by the Bush administration's business-friendly antitrust authorities.
Congress cannot directly prevent an airline merger, but can hold hearings to examine the deals and apply political pressure. In general, lawmakers fear that an industry dominated by giants would forget about smaller, remote communities.
The wariness is bipartisan. Florida's Rep. John Mica, the House Transportation Committee's senior Republican, said even free-market conservatives are reluctant to endorse airline mergers.
"I myself have mixed emotions because I know there are some benefits that can come from consolidation, but I am worried about the loss of competition," Mica said. "I'm not sure having just a few carriers would be good for consumers."
Last year when Delta's independence appeared threatened by Tempe, Ariz.-based US Airways, Sen. Jay Rockefeller (D-W.Va.), who chairs the Senate's aviation subcommittee, provided an example of how Congress can apply political pressure. During the hearing, he floated the idea of imposing regulations to force more air service to rural areas.
"I am becoming increasingly convinced that some regulation may become an option to make sure small communities are not harmed by consolidation," Rockefeller said at the time.
US Airways CEO Douglas Parker tried to win over Congress, saying the merger he was proposing would lower costs, boost operational efficiencies and allow the combined airline to cut fares in "dozens of new markets."
But Grinstein told them that 10,000 jobs would have to be cut from the airlines to make the merger work.
During a break at that hearing, Grinstein told reporters he wanted Congress to pass a nonbinding resolution urging the Bush administration to block the deal. But the takeover bid fizzled out before it ever came to a showdown in Washington.
Isakson said he would not necessarily object to a 2008 merger with another carrier, as long as Delta emerged as the surviving company.
"This is a business world," where corporations have to boost profits, he said. But having said that, he will fight to keep the headquarters in Atlanta, no matter what Wall Street wants.
"It's a great brand with a great reputation that is very much linked to Georgia," Isakson said. "It would be a real blow" if Atlanta did not continue to serve as the company's headquarters and primary hub.
Rep. David Scott (D-Ga.) said Georgia's House representatives likewise are focused on "the importance of Delta staying in Atlanta."
But if Delta were to try a merger with Northwest, Georgians could find themselves fighting Rep. James Oberstar. He is the House Transportation Committee's chairman and a Democrat from Minnesota, where Northwest is headquartered.
In an e-mail, Oberstar's spokesman Jim Berard said, "Rep. Oberstar certainly can be expected to work to maintain NWA's presence in Minnesota."
TALKING POINTS

• Aug. 21: Delta's board names Richard H. Anderson as chief executive succeeding Gerald Grinstein, effective Sept. 1. Anderson was a top executive at UnitedHealth but had previously run Northwest Airlines.
• Aug. 22: "I do not come here with any merger intentions," Anderson says in a visit to the Atlanta airport.
• Aug. 30: Chief Operating Officer Jim Whitehurst, who had been a CEO candidate, leaves Delta.
• Oct. 16: Anderson tells analysts a merger "could make sense for Delta if it's done sensibly and from a position of strength." He later says he was restating company position in response to frequent questions and "wasn't trying to kick off anything."
• Nov. 14: Reports surface that hedge fund Pardus Capital urged Delta and United to pursue merger, igniting speculation that a worsening industry outlook and falling stock prices could spark consolidation. The airlines denied having talks.
• Nov. 15: Anderson, in a congressional hearing, tells inquiring lawmakers: "There are no discussions ... There have been no discussions."
• Nov. 29: Delta's top operations executive retires; his replacement is Stephen Gorman, who worked with Anderson at Northwest.
• Wednesday: With stock prices down sharply in recent weeks and new worries about travel demand and overcapacity, merger talk percolates anew. Delta's pilots' union chairman tells pilots, "Consolidation may indeed be at our door."
• Thursday: Reports surface that Anderson will seek board approval to pursue formal merger talks with Northwest and United, though no deal may result.

[JEP]

ouch, my eyes hurt after reading that.

[H46Bubba]

Sorry Jim! Fixed!

[JEP]

Originally Posted by H46Bubba

Sorry Jim! Fixed!

no worries, I thought it just may have been in the format from the cut/paste...just giving you a hard time.

[H46Bubba]

Originally Posted by JEP

no worries, I thought it just may have been in the format from the cut/paste...just giving you a hard time.

I know! It looked normal in the preview, but when it posted it was huge.