Flight attendants, mechanics say Delta merger will hurt consumers


The Atlanta Journal-Constitution
Published on: 05/08/08

WASHINGTON — Flight attendants and mechanics told Congress on Wednesday that the planned merger of Delta Air Lines and Northwest Airlines could hurt consumers, communities and workers.

But the carriers' chief executives insisted they must combine to compete effectively worldwide and deal with soaring fuel prices.

RICK MCKAY/Washington Bureau
Delta CEO Richard Anderson, right, and Northwest President and CEO Douglas Steenland, left, during testimony before the House Judiciary hearing Thursday, April 24, 2008 in Washington, DC.
 
DELTA MERGER
Latest stories:
All eyes on flight attendant vote
Flight attendants vote on joining union
Merger benefits could take years
Civil rights coalition: Delta needs to boost diversity
What's value of merger? Depends

What it means:
For employees, fliers, stock

Maria Saporta:
Atlanta stays dominant in global business

Have your say:
Who won? Who lost?
Tales from two cities

New Web site:
Airlines give their take

Rankings:
Customer service
Versus their rivals

Track their stocks:
DAL | • NWA

Corporate:
Memo to employees (PDF)
Bios of leadership
Merger timeline/history
Airlines set up Web site

Photos:
CEOs testify
Tuesday's developments
Monday at airports
Delta through the years

Maps:
Delta, Northwest hubs
New international route

Video:
CEOs tout merger benefits

More Delta News
More Business News
Business Photo Galleries

"In order for these two carriers to do right by employees, by shareholders, by the communities we serve, we should be given opportunity to act on our own," Delta CEO Richard Anderson told a Senate Commerce subcommittee.

Anderson and Northwest CEO Douglas Steenland repeated their claim that after a merger, Delta does not plan to reduce service to smaller communities or raise prices. While Anderson told two other committees last month that about 1,000 headquarters jobs could be cut in Minnesota and Atlanta, where the combined airline will be based, the CEOs said Wednesday that layoffs will be minimal elsewhere.

Merger opponents, however, told the senators the merger is just another quick fix that will not solve industry-wide problems such as high fuel prices and high executive salaries.

"I've been in this industry for 33 years and I've heard a lot of promises and the commitments made today will mean nothing tomorrow," said Robert Roach, general vice president of the International Association of Machinists and Aerospace Workers union.

"It's time we fix the (industry's) problems instead of having short-term fixes that only provide millions and millions of dollars to the people at the top of these airlines," he said.

Patricia Friend, international president for the Association of Flight Attendants union, said she was concerned that a new, bigger Delta could use its heft to cut labor costs and keep out unions. She said the financial problems facing all airlines today demands attention from regulators.

"We believe Congress must take a hard and very serious look at where this industry is heading," Friend said. The current airline industry, she added, "is failing employees, consumers and communities."

Asked whether the new Delta would try to keep out union organizers, Anderson said the company would only try make sure employees were educated and that fair elections were held.

"We've tried very hard to create a positive work environment at Delta," Anderson said.

Groups representing airline workers have taken the lead in opposing mergers. The head of United Airlines' pilots union issued a statement saying a merger with US Airways, now under discussion, would do little to solve United's financial problems.

Wednesday's hearing on the Delta and Northwest was designed to explore whether the deal to create the world's largest airline would hurt consumers or decrease competition.

Mark Cooper, director of research for the Consumer Federation of America, suggested it might not make a difference.

Either way, Cooper said, consumers face "fewer choices, higher prices and crummier service."

Vote for this story!

Inside AJC.COM

Weekend plans?

Andy Roddick play in a charity tennis tourney; Mary J. Blige, Taste of Atlanta and more

Get outside and play!

From hiking & biking to golf & tennis, just do it.

At home with Vince Dooley

The coaching legend has a green thumb to go along with his allegiance to red and black.

-->

Need new wheels?

Compare new & used cars, find car shows, search listings.

Zoo Atlanta

Lions and tigers and bears — oh my! Here's your guide to Zoo Atlanta.

Entertainment on a dime

Save a little (or a lot) when you're planning fun things to do with friends this week.

Atlanta's favorite recipes

Here are 11 of the most-clicked recipes on EveningEdge.com.

Let Fido play!

Find a dog park near you.

Popcorn and a show

Movie previews, reviews and trailers to help you make your theatre decision.

Search AJC Archives

1985 to present     1868 - 1939 Advanced search

Kudzu.com services Find the right people for the job

Keyword     Business Name

AJCPets » The community for Atlanta pet lovers

Do Good Search for non-profit causes near you