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Delta exec to appear before Minnesota committee on Northwest

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April 30, 2008

ST. PAUL, Minn.—It looks like Minnesota lawmakers will get their wish to hear from a Delta Air Lines Inc. executive.

Delta President and Chief Financial Officer Ed Bastian will appear before the Minnesota House Commerce and Labor Committee on Monday, chairman Rep. Joe Atkins, D-Inver Grove Heights, announced.

Atkins had been complaining that Delta was ignoring his requests to send an executive to answer questions about Delta's planned purchase of Northwest.

When a Northwest executive appeared before his committee last week, Atkins joked he would volunteer his frequent flier miles to get a Delta executive to St. Paul. That never happened -- but some committee members did threaten to issue a subpoena.

The airlines don't need the state's permission to combine. But Northwest did promise to keep its headquarters in Minnesota in exchange for state-backed bonds and what amounts to a rent reduction at the airport, which also applies other airlines that fly out of the airport.

The state can force immediate repayment of the bonds if the headquarters leaves. Delta has said the new airline will be based in Atlanta.

Gov. Tim Pawlenty has said he intends to enforce those commitments. However, on Wednesday he said that bills that would force the state to demand immediate repayment might not help.

"If we have legislation that says `take it now,' then their hands are completely un-handcuffed. They can do whatever they want. We have no leverage over them," Pawlenty said.

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