[Congressional Record Volume 154, Number 96 (Wednesday, June 11, 2008)]
[House]
[Page H5218]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AIRLINE REORGANIZATION THREATENING MEMPHIS BUSINESS COMMUNITY
(Mr. COHEN asked and was given permission to address the House for 1
minute.)
Mr. COHEN. Mr. Speaker, this morning's Memphis ComercialAppeal had
distressing news for our city. Delta Airlines had canceled part of its
contract with Pinnacle Airlines, an airline that had 1,000 jobs in our
community. The stock price fell 25 percent, and the newspaper reported
that stockholders are concerned about the continued existence of the
business.
If the merger takes place and Delta and Northwest merge, it is
entirely possible that Delta will cancel the remaining portion of
Pinnacle's business with Northwest Airlink, where they serve many
customers through Northwest Airlines. That would be devastating to the
Memphis economy and possibly cost us thousands of jobs.
I am very concerned, and plan to call Delta Airlines to find out why
this contract was cancelled, what possibly could happen, how this
merger would affect those 1,000 people, and if possibly re-regulation
of the airlines is in order to make sure that abrupt changes in
contracts that might cause irreparable harm and immediate damage can't
take place if they threaten an industry and an employer in my district
such as Pinnacle Airlines.
Mr. Speaker, I am concerned about the future of this large business
in my community, and plan to look into it for the benefit of the
employers and my overall business community.
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