Wednesday, April 16, 2008

Northwest History?

Northwest Airlines Cheif Executive Doug Steenland said there's no chance that Northwest and Delta officials will reconsider Minnesota for the merged airlines headquarters. Steenland said Northwest want to renegotiate with the State of Minnesota to preserve the Twin Cities hub and modify new employment levels. But he insists that the new airline will be based in Atlanta. Minnesota House Republican Tom Emmer is not ready to concede though. He'll try to suspend normal procedural rules to vote on a tax break package to lure Delta Airlines HQ to Minnesota. Emmer said Minnesota's business climate is not as friendly as it could be and by aggressively offering incentives in current law, Delta officials could change their minds.

Meanwhile, Congressman Jim Oberstar said this is only the first of future mega-mergers in the airline industry. Oberstar said he expects United to join with another, perhaps Continental and they will consolidate with British carrier Midland and Lufthansa and a Pacific Rim partner. Oberstar expects three large mega-carriers to emerge and smaller, low-fare carriers will no longer be able to compete. Oberstar said the US Congressional sub-committee on aviation will take a look at current anti-trust rules, but not just as it relates to the current mergers but the bigger picture of global competition.

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