Antitrust Committee debates Delta and Northwest Airlines merger

The Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer rights today held a hearing looking at the proposed merger between Delta and Northwest Airlines. Chaired by Senator Herb Kohl (D-WI), Committee members debated whether the merger would be detrimental to consumers and to the economy by eliminating market competition in the airline industry, and limiting airline choices for prospective flyers.

The panel of witnesses at the hearing included President and CEO of Northwest Airlines Douglas Steenland and CEO of Delta Airlines Richard Anderson. Anderson and Steenland argued that their merger would not eliminate choices for consumers because their companies’ flight paths complement one another. Also, the CEO’s argued that job loss as a result of the merger would be small. They stood firm in their stance that the market, their respective company’s incomes, and the airline industry as a whole, would be better off as a result of the merger.

Their sentiments were met with both skepticism and support. Some senators, such Ranking Member Hatch (R-UT), described the merger as one that would improve the economy and reward flyers with better service. Others described the merger as one that could undermine the entire airline industry, and one that would influence other mergers in the future.