A proposal by Delta Air Lines to buy Northwest Airlines is likely to be approved by the U.S. government, an influential lawmaker on aviation affairs said on Wednesday.
Rep. John Mica, a Florida Republican and former chairman of the House of Representatives aviation subcommittee, told a hearing on the merger proposal that the deal to create the world's biggest airline did not appear anti-competitive.
Mica disagreed with senior Democratic colleagues on the panel who predicted the merger would probably lead to service and job cuts and usher in other mergers to further narrow choices for consumers.
Mica said it was more likely than not that "this merger will be granted" by officials at the Justice and Transportation departments who are reviewing the potential impact on competition and service.
Antitrust and industry experts have said previously the Delta/Northwest proposal stood a good chance of winning regulatory approval.
A senior official from the Justice Department's Antitrust Division, James O'Connell, told the hearing in prepared testimony that he could not comment on the case.
Delta proposed in April to acquire rival Northwest in an all-stock deal. Executives of the merged company say they plan to expand service, especially overseas.
So far, the proposal has met little or no resistance in Congress, which cannot block a deal. Lawmakers, however, can disrupt the timing of the regulatory review, influence policymakers and rally consumers and workers.
Aviation subcommittee Democrats gave the chief executives of both airlines -- Richard Anderson of Delta and Douglas Steenland of Northwest -- their toughest public review yet.
Reuters
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