House Judiciary Committee Chairman John Conyers, Jr. (D-MI) announced that the Committee's Taskforce on Competition Policy and Antitrust Laws will hold a hearing titled, "Competition in the Airline Industry" on Thursday, April 24, at 10 a.m. in room 2141 of the Rayburn House Office Building. Among the issues to be addressed will be the recently announced Delta Airlines merger with Northwest Airlines. Machinists Union International President R. Thomas Buffenbarger will testify on the merger’s impact on employees. The CEOs of both companies – Richard H. Anderson (Delta) and Douglas M. Steenland (Northwest) - will also testify.

All IAM transportation members who live in the D.C. area or can easily travel to Washington, D.C. are invited to attend and show support  for the Machinists position against senseless airline mergers.

WHAT: House Judiciary Taskforce on Competition Policy and Antitrust Laws hearing, "Competition in the Airline Industry" 

WHEN: Thursday, April 24, 2008, 10 a.m. 

WHERE: Rayburn House Office Building Room 2142 

MORE INFORMATION: http://judiciary.house.gov/schedule.aspx

April 17, 2008
More mergers may follow Delta-Northwest deal
 

The proposed merger of Delta Air Lines and Northwest Airlines has prompted speculation that other carriers will also combine. United Airlines and American Airlines may make bids for other airlines, some observers say. US Airways and United have discussed a merger for about a month, according to media reports. Meanwhile, some investors and labor groups are critical of the Delta-Northwest deal, but Delta CEO Richard Anderson is reportedly confident of a smooth integration and quick antitrust clearance; the Department of Justice is scheduled to review the merger deal, and lawmakers are scheduling hearings as well. Air Transport World (4/16) , The Washington Post/Reuters (4/15) , ClipSyndicate/Associated Press (4/15) , The Wall Street Journal (subscription required) (4/16) , The New York Times

Opinion: Merger will strengthen, stabilize Delta, Northwest: The merger of Delta Air Lines and Northwest Airlines will result in a stronger company that can meet future challenges in the U.S. and overseas, write Delta CEO Richard Anderson and Northwest CEO Doug Steenland. They note that the entire industry is a product of consolidation. "The industry that has resulted is the most competitive in the world and provides Americans with far more airline service, at much lower prices, than before the industry was deregulated," the executives write. Meanwhile, some passengers say they are optimistic about the effects of the proposed merger. The Wall Street Journal (subscription required) (4/16) , The Atlanta Journal-Constitution

April 16,2008
Northwest-Delta Propose Merger 
Northwest Airlines and Delta Air Lines have announced plans to merge, creating the world’s largest airline. 
     “Airline industry consolidation will come at tremendous public expense,” said IAM General Vice President Robert Roach, Jr.  “The Machinists Union’s Merger Committee has examined the Northwest-Delta merger proposal, and we firmly believe that this merger is not in the best interest of passengers, employees and the communities these airlines currently serve.” 
     “Northwest Airlines and Delta Air Lines seeking to merge is just the latest chapter in the crisis-filled history of our beleaguered industry,” said District 143 President Steve Gordon. “Airline employees are right to ask if this is a recipe for failure on a grand scale. I would not blame any airline employee who sees this as nothing more than a power play by airline executives at the expense of employees and passengers.”
     Although Delta and Northwest may have an agreement, the merger’s completion is far from certain. Before airlines can complete a merger they must first be reviewed by the Department of Transportation (DOT) and approved by the Department of Justice (DOJ).  When United Airlines and US Airways announced a merger in 2000 it  took 18 months before the DOJ rejected the merger. 
     The Northwest-Delta  action may prompt additional mergers. It is possible that some combination of Continental, United, American and others may also be attempted. 
     “Continental’s IAM-represented Flight Attendants are currently the highest paid in the industry,” said District 142 President Tom Higginbotham. “Because of strong IAM negotiators, Continental Flight Attendants are the airline’s only employee group who did not take a base wage reduction in the company’s recent restructuring. There is a lot at risk, but the IAM is prepared.” 
     “A merger could possibly lead to a loss of union representation entirely,” said District 141 President Randy Canale. “This occurred when American Airlines bought Trans World Airlines (TWA). TWA’s IAM-represented Customer Service and Reservation employees were combined with their non-union counterparts at American, losing all union protection.” 
     “We will need the solidarity of the membership if we are to have any success protecting our jobs, our contracts and our pensions,” said Gordon.
     The IAM has been meeting with key legislators for months to raise opposition to massive industry consolidation. Those efforts will continue and intensify.
     “We will do everything legally possible to oppose any merger that threatens our members' jobs, labor contracts, pensions, seniority and their right to union representation.” 
Take Action to Stop Senseless Mergers 
     The IAM needs your help to stop mergers that will only benefit a select few of privileges executives. Tell your elected officials to oppose the Northwest-Delta merger and the other equally detrimental mergers that may follow. Visit www.capwiz.com/iamaw/home to learn how. 
     You can also make your opinions heard by taking the IAM’s Airline Merger Survey at www.goiam.org/transportation.