[Congressional Record (Bound Edition), Volume 152 (2006), Part 17]
[Senate]
[Pages 22720-22721]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             DELTA AIRLINES

  Mr. ISAKSON. Mr. President, I rise for a moment in morning business 
to address an issue that to some may appear only to affect the State of 
Georgia and maybe even in particular the city of Atlanta. But in 
practice, I say to the distinguished Senator from Utah who is in the 
chair and others, this is an issue of major import to the United States 
of America.
  An offer has been tendered for the purchase of Delta Airlines. Delta 
Airlines is a great American carrier that, like most airlines, has gone 
through terribly difficult times post-9/11. Delta went into bankruptcy. 
Delta has worked hard in bankruptcy to develop a plan to exit 
bankruptcy as a healthy, thriving, and dominate company. To Delta's 
eternal credit, their management committed from the beginning that they 
would honor and preserve the pension plans of their employees were we 
able in the U.S. Congress to modernize the pension laws in this country 
to allow them to do so.
  Thanks in no small measures to yourself, Mr. President, and to 
Senator Hatch as well and the 97 Members of this body, the pension 
modernization bill passed. We put in specific provisions for the 
aviation industry, and great airlines and their employees now will be 
able to earn their pensions and not have them dispensed with because we 
addressed that crisis, and more importantly Delta Airlines' management 
has worked to reduce its costs, and its employees have voluntarily 
taken pay

[[Page 22721]]

cuts. They have modernized their fleet. They have repositioned their 
fleet. They have opened international marketplaces that never before 
were available to people in this country. They have paid the heavy 
price that only in the great American free-enterprise system are you 
able to do where you take the problems and adversity and turn them into 
opportunities.
  Now on the doorstep of exiting bankruptcy and filing that petition, a 
hostile takeover has been made to purchase that great airline.
  Before I came to the Senate, I was in business. Nobody understands 
buying and selling companies and opportunities better than I, and no 
one would ever diminish those who seek to take advantage of those 
opportunities which are there. But I rise for just a minute to make 
some points that I hope all of us in this Senate and the appropriate 
committees in this body and the appropriate agencies of the United 
States are very careful to examine before any acquisition or merger of 
U.S. Airlines and Delta Airlines were to take place.
  First, in our fragile aviation system it is critical to understand 
that competition is still in the best interests of the American 
consumer. If you overlay the routes of those two airlines, you will see 
massive duplications, which ends up in many cases that where there are 
two competitors in an airport, it is reduced to only one. In the 
absence of competition, prices rise and service is diminished.
  Second, in the great hub-and-spoke airlines and the legacy carriers 
of this country, people in secondary markets have had access to the 
major airports such as O'Hare and Hartsfield and LAX in Los Angeles. 
But as you merge two together, the first place they find savings is in 
reductions of those flights and those capacities from those secondary 
markets--the Augusta, Georgias; the Columbuses; the Meridian, 
Mississippis; the Asheville, North Carolinas; and many other cities 
such as those around the country. It is very important for us to be 
sure, when we analyze the viability of such a proposal, that we not 
diminish the opportunity for Americans in those cities to be able to 
access aviation as they have in the past.
  Equally important is the future of aviation in this country. A 
further consolidation of the airlines we have now would lead us to 
singular service in many cities, an absence of competition, an 
inevitable increase in rates, and, unfortunately, less than the 
healthiest aviation industry in the country.
  As this proposal has now come forward, it is important for us in this 
body to analyze from a competitive standpoint, from a competition 
standpoint, from a consumer interest standpoint, from a marketplace 
standpoint, from a secondary market standpoint, and from the heavy 
prices that have been paid by the American aviation industry to 
reposition itself post-9/11 to make sure we honor those that have paid 
the price, are prepared to exit bankruptcy as a viable competitive 
airline, and not allow a quick, hostile takeover at the last minute and 
threaten competition, secondary market service, lower flight costs, and 
the great reward of America for paying the price to do the right thing, 
to exit bankruptcy and come back stronger than ever before.
  I respect this great system. I respect greatly Delta Airlines and the 
price its employees have paid. I respect greatly the management that 
committed itself even in bankruptcy to ensuring its employees come 
first, their pensions would be honored, and they did whatever to see to 
it that was a reality.
  As one Member of this Senate, I will call on my colleagues to look 
diligently at all of these questions as we move forward and make sure 
we honor competition, that we honor the secondary market, that we honor 
the employees of this great airline and do everything we can to 
preserve the modern competitive aviation system we have today and do 
not succumb ourselves to the threat of massive consolidation and an 
absence of competition.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Ohio is recognized.

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