Oberstar expected to oppose United merger

That proposed merger of United Airlines (serving Duluth with Chicago flights) with Continental Airlines, won’t get the needed nod from the feds without some intensive antitrust scrutiny.

Among the biggest critics in what would result in the world’s biggest airlines is expected to be our own U.S. representative, Jim Oberstar. The deal goes before the House Subcommittee on Aviation which he heads in a hearing June 16. Oberstar has urged the Justice Department to reject the deal, according to The Wall Street Journal.

The merger, anounced May 3, is expected to get greater scrutiny by Obama Aministration than Delta Air Lines’ acquisition of Northwest Airlines did in 2008 under President George W. Bush

Among the anti-trust concerns is whether the resulting mega airlines will have too much power to raise prices and ability to reduce customer service, the Journal said.

Still, the United-Continental marriage is expected to get government approval, though some strings may be attached.

But with the review process taking longer than Delta’s six months, the deal may not close by year’s end as corporate officals had hoped.

 

2 thoughts on “Oberstar expected to oppose United merger

  1. Is anyone surprised by Oberstar’s point of view. With most of the gates in the Twin Cities tied up by Delta/Northwest, this would offer Duluth a better opportunity to increase flights out of a less congested airport. United/Continental offers more destinations in the U.S. and the world for that matter. I think the merger can only stand to benefit the Duluth airport if Rycks gets his ducks in a row.

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