| 00:00:03 |
Unidentified Speaker, -
HOURS. >> GOOD MORNING. THE JUDICIARY COMMITTEE, NAMELY THE TASK FORCE ON COMPETITION POLICY AND ANTI-TRUST LAWS, WILL COME TO ORDER. WE'RE HAPPY TO...
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| 00:00:40 |
Unidentified Speaker, -
AND I WANT TO BEGIN BY OBSERVING THAT TODAY WE'RE CONSIDERING THE ISSUE OF AIRLINE COMPETITION AND THE PROPOSED MERGER BETWEEN DELTA AND NORTHWEST...
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| 00:10:51 |
Unidentified Speaker, -
RESPECTIVE REGIONS. BUT IT ALSO OBVIOUSLY HAS IMPLICATIONS ACROSS THE ENTIRE COUNTRY. I'D ALSO LIKE TO THANK OUR WITNESSES FOR TAKING THE TIME TO DISCUSS...
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| 00:14:40 |
Unidentified Speaker, -
TO ENSURE THAT AMERICAN MARKETS RETAIN HEALTHY COMPETITION. THIS HEARING IS EVIDENCE OF THE COMMITTEE'S CONTINUED LEADERSHIP IN CONSIDERING MERGERS...
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| 00:15:45 |
Unidentified Speaker, -
SHOULD MONITOR CLOSELY. I'D LIKE TO TANK OUR WITNESS TODAY, MR. CHAIRMAN. WE HAVE TWO GREAT PANELISTS, AN I'LL YIELD BACK THE BALANCE OF MY TIME....
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| 00:16:16 |
Unidentified Speaker, -
CHAIRMAN. >> MR. ELLISON. >> MR. CHAIRMAN, I'M OBSERVANT OF THE
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| 00:16:24 |
Unidentified Speaker, -
RULES OF THE COMMITTEE, I KNOW I'M NOT SUPPOSED TO MAKE A STATEMENT, BUT I -- >> YOUR STATEMENT WILL BE WELCOMED INTO THE RECORD AS WITH ALL OTHER...
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| 00:16:37 |
Unidentified Speaker, -
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| 00:16:41 |
Unidentified Speaker, -
MEMBERS.
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| 00:16:43 |
Unidentified Speaker, -
YES? RANKING MEMBER SMITH AND JIM SENSENBRENNER, CHAIRMAN EMERITUS, YOUR STATEMENT? >> I'LL MAKE A
|
| 00:16:52 |
Unidentified Speaker, -
VERY BRIEF STATEMENT. ALL POLITICS IS LOCAL. THE CONCERN THAT I HAVE IS THE IMPACT OF THIS ERG MANIER ON THE 47% PASS OF INTEREST THAT NORTHWEST...
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| 00:17:13 |
Unidentified Speaker, -
THIS MERGER IS CONSUMMATED IT WILL DO NOTHING TO IMPEDE UPON THE SERVICE THAT THIS CARRIER CURRENTLY PROVIDES. I THANK THE GENTLEMEN. >> YOU'RE WELCOME....
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| 00:17:46 |
Unidentified Speaker, -
AIRLINE PILOTS ASSOCIATION, AND THE AIR MECHANICS FRATERNAL ASSOCIATION. THEY'RE REPRESENTED AND FRIENDS AND SUPPORTERS ARE ALL IN THE HEARING ROOM AS...
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| 00:19:37 |
Unidentified Speaker, -
BEEN LOCATED IN ATLANTA FOR 67 YEARS. THEY HAVE 25,000 EMPLOYEES IN ATLANTA AND THEIR HUB WHICH IS LOCATED AT HARTSFIELD-JACKSON ATLANTA INTERNATIONAL...
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| 00:22:06 |
Unidentified Speaker, -
YOUR STATEMENTS WILL BE INCLUDED IN THE RECORD. PLEASE FEEL WELCOME. >> GREAT. THANK YOU VERY MUCH, MR. CHAIRMAN. AND I WAS VERY PLEASED BY THE INTRODUCTION....
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| 00:22:35 |
Unidentified Speaker, -
APPRECIATE THE OPPORTUNITY TO EXPLAIN THE BENEFITS OF THE RECENTLY ANNOUNCED MERGER BETWEEN NORTHWEST AND DELTA AND THE FACT THAT THIS MERGER WILL NOT...
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| 00:28:06 |
Unidentified Speaker, -
FILE OF OUR COMPANY, PILOTS, FLIGHT ATTENDANTS, AIRPORT PERSONNEL AND IT'S A PRIVILEGE TO BE HERE ON THEIR BEHALF. IT'S ALSO A PRIVILEGE TO BE INTRODUCED...
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| 00:28:17 |
Unidentified Speaker, -
CONGRESSMAN LEWIS. YOU KNOW, THIS REALLY CREATES THE FIRST REAL U.S. GLOBAL AIRLINE. THE WORLD IS CHANGING RAPIDLY. WE KNOW THAT COMMERCE IS NOW ...
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| 00:31:06 |
Unidentified Speaker, -
THE EUROPEAN UNION OPENED SKIES AND THE CONTINUATION OF THE OPEN SKIES POLICIES REQUIRE IS TO COMBINE OUR NETWORKS IN ORDER TO COMPETE IN AN COOL AND...
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| 00:34:17 |
Unidentified Speaker, -
YOU KNOW, WE HAD, IN THE AMERICAN AIRLINES, TWA AMERICANER NO HUBS WILL BE CLOSED AND WITHIN TWO YEARS THEY WERE CLOSING HUBS. THE OTHER THING I'M...
|
| 00:36:11 |
Unidentified Speaker, -
NETWORK AND HAD BEEN THROUGH BANKRUPTCY THREE TIMES WHEN AMERICAN PURCHASED ITS ASSETS. AND AS A RESULT, THE ST. LOUIS HUB WAS A -- WAS NOT A VERY...
|
| 00:38:31 |
Unidentified Speaker, -
HIGHEST CASH POSITION. WE ARE AS WELL-POSITIONED AS ANY OTHER AIRLINE OUT THERE. NOW, HAVING SAID THAT, WHEN WE EMERGED FROM OUR RESTRUCTURING FUELS...
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| 00:40:56 |
Unidentified Speaker, -
NOW I RECOGNIZE A RANKING MEMBER, STEVE SHAB GOT. >> THE CINCINNATI INQUIRES PRINTED HIGHLIGHTS FROM A SURVEY CONDUCTED BY THE NATIONAL BUSINESS TRAVEL...
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| 00:41:27 |
Unidentified Speaker, -
WOULD BE POORER WHILE 41% SAID FLIGHT FREQUENCIES TO SOME MARKETS WOULD WORSEN. HOW WOULD YOU RESPOND TO THE CONCERNS EXPRESSED BY THESE CUSTOMERS...
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| 00:42:06 |
Unidentified Speaker, -
MOST RECENT AIRLINE QUALITY RATINGS IT RATED FIRST AMONG NETWORK CARRIERS. BOTH CARRIERS HAVE A LONG HISTORY OF VERY SOLID OPERATIONS. I WOULD SUBMIT...
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| 00:43:36 |
Unidentified Speaker, -
AND WE'RE HOPEFUL THAT THAT WILL MAKE THIS TRANSITION MUCH, MUCH SMOOTH. >> THANK YOU. MR. STEENLAND, LET ME FOLLOW UP, IF I CAN. ONE OF THE ARGUMENTS...
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| 00:44:00 |
Unidentified Speaker, -
PURCHASE OF FUEL? >> THE SIMPLE ANSWER IS NO. THERE MIGHT BE A FEW PLACES WHERE NORTHWEST PURCHASES FUEL A LITTLE BITTER THAN DELTA DOES AND VICE VERSA,...
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| 00:44:23 |
Unidentified Speaker, -
CLOSELY. WE HAVE DONE TREMENDOUS AMOUNT OF ANALYSIS TO MAKE SURE THAT WE'RE CONFIDENT IN THAT. CONSERVATIVELY SPEAKING, WE THINK THAT'S WORTH MORE...
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| 00:45:17 |
Unidentified Speaker, -
OR LOUISVILLE OR INDIANAPOLIS JUST BECAUSE THEY CAN GET A BETTER DEAL THERE ON A PARTICULAR FLIGHT. THEY'RE LESS EXPENSIVE AND, THEREFORE, THEY DO...
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| 00:46:25 |
Unidentified Speaker, -
NIGHT -- FLIGHTS A DAY. WE HAVE 400 FLIGHTS A DAY. NORMALLY IN COMPETITION CONTESTABILITY ANALYSIS YOU'RE LOOKING AT OVERLAPS IN MARKETS, RIGHT,...
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| 00:48:42 |
Unidentified Speaker, -
HAVE CONCERNS. I KNOW A LITTLE BIT ABOUT
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| 00:48:44 |
Unidentified Speaker, -
THE HISTORY OF THE
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| 00:48:47 |
Unidentified Speaker, -
INDUSTRY. GOING BAG SO SOUTHERN AIRLINES WHICH WAS PART OF REPUBLIC MERGER. MEMPHIS IS DESIROUS OF HAVING A HUB. IT'S IMPORTANT FOR US AS A BUSINESS...
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| 00:49:27 |
Unidentified Speaker, -
WORLD, AS WE CARRY THEIR SALESPEOPLE,
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| 00:49:30 |
Unidentified Speaker, -
THEIR EXECUTIVES, PILOTS. OTHER OF THEIR EMPLOYEES THROUGHOUT OUR GLOBAL NETWORK. I THINK
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| 00:49:37 |
Unidentified Speaker, -
THE EXISTENCE OF OUR HUB IN MEMPHIS ACTUALLY, YOU KNOW, HAS ALLOWED FEDEX TO GROW AND EXPAND. THEY HELP US IN TERMS OF WE SHARE COSTS AT THE AIRPORT...
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| 00:50:36 |
Unidentified Speaker, -
PEARL, MAIER HARRINGTON
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| 00:50:40 |
Unidentified Speaker, -
AND HAVE BEEN A BIG SUPPORTER
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| 00:50:42 |
Unidentified Speaker, -
OF THE AIRPORT AND WAS INSTRUMENTAL IN LAUNCHING THE SERVICE FROM
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| 00:50:45 |
Unidentified Speaker, -
MEMPHIS TO AMSTERDAM SOME I GUESS TEN YEARS AGO NOW, AND IT'S BEEN REALLY SUCCESSFUL. WE PARTNERED WITH THE AIRPORT TO BILL A FEDERAL INSPECTION SERVICE...
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| 00:51:27 |
Unidentified Speaker, -
WITH THE
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| 00:51:29 |
Unidentified Speaker, -
ALLIANCE ARRANGEMENTS THAT WE HAVE WITH AIR FRANCE
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| 00:51:32 |
Unidentified Speaker, -
AND KLM, LIKE AMSTERDAM WORKS FOR MEMPHIS, THE@ COROLLARY IS PARIS BECAUSE PARIS WILL BE THE HUB OF THE COMBINED NORTHWEST/DELTA IN EUROPE. AND THE...
|
| 00:52:30 |
Unidentified Speaker, -
HAVE PLENTY OF CAPACITY. SO WE BUILT THE WORLD RUNWAY IN MEMPHIS AND OPENED IT UP SEVEN, SIX YEARS AGO. ATLANTA JUST ADDED A FIFTH PARALLEL RUNWAY....
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| 00:52:43 |
Unidentified Speaker, -
HAS FOUR PARALLELS AND TWO CROSSWINDS. MINNEAPOLIS JUST BUILT A NEW RUNWAY. SALT LAKE IS STARTING A NEW CAPITAL PLAN, A VERY WELL-RUN AND WELL-MANAGED...
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| 00:53:27 |
Unidentified Speaker, -
ATLANTA, YOU KNOW, WHERE YOU HAVE MORE SERVICE. MEMPHIS IS THE CENTER OF THE DELTA.
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| 00:53:35 |
Unidentified Speaker, -
THANK YOU. >> APPRECIATE THAT. >> YOU KNOW, MEMPHIS AT WITHIN TIME WAS THE NUMBER TWO CITY ON THE DELTA NETWORK BACK WHEN MR. WOLMAN WAS CEO. AT THAT...
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| 00:53:56 |
Unidentified Speaker, -
YOU VERY MUCH. >>
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| 00:53:57 |
Unidentified Speaker, -
THE ABLE GENTLEMAN FROM FLORIDA, RICK KEL. >> THANK YOU VERY MUCH, MR. CHAIRMAN. I WANT TO THANK OUR CEOs FROM DELTA AND NORTHWEST FOR BEING HERE...
|
| 00:54:14 |
Unidentified Speaker, -
ARE BEING
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| 00:54:16 |
Unidentified Speaker, -
CUT. BUT THROUGH IT ALL
|
| 00:54:18 |
Unidentified Speaker, -
YOUR APPROVAL RATINGS
|
| 00:54:20 |
Unidentified Speaker, -
ARE STILL HIGHER THAN CONGRESS. SO, NATURALLY WE'RE HERE TO QUESTION YOU ABOUT YOUR BUSINESS. THAT'S JUST HOW THINGS WORK. I'M GOING TO ASK YOU LOCAL...
|
| 00:55:39 |
Unidentified Speaker, -
AN EARLY OUT AND AN EARLY RETIREMENT PROGRAM IN PLACE TO HAVE ALL OF THAT DONE VOLUNTARILY. SO ON THE EMPLOYMENT FRONT IT WON'T HAVE AN IMPA. THE ISSUE...
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| 00:56:25 |
Unidentified Speaker, -
THE TRANSACTION WE'RE CONTEMPLATING HERE WILL MAKE BOTH OF US STRONGER. WHETHER IT WILL -- I CAN'T SIT HERE AND TELL YOU THAT WE WILL INCREASE
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| 00:56:34 |
Unidentified Speaker, -
SERVICE TO ORLANDO. THAT'S GOING TO BE MORE A PRODUCT OF WHERE FUEL AND THE ECONOMY IS. >> SO LET ME HEAR WHAT I'M HEARING. IN TERMS OF JOB LOSSES OR...
|
| 00:57:01 |
Unidentified Speaker, -
ABOUT ROUTES COMING BACK. IF -- >> THAT'S A FAIR SUMMARY? >> THAT'S A VERY FAIR SUMMARY. >> LET ME SWITCH TO MR. STEENLAND, WITH RESPECT TO ORLANDO,...
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| 00:57:21 |
Unidentified Speaker, -
SERVES ORLANDO FROM OUR THREE HUBS. SO WE
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| 00:57:25 |
Unidentified Speaker, -
OPERATE FLIGHTS
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| 00:57:26 |
Unidentified Speaker, -
THERE FROM DETROIT,
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| 00:57:28 |
Unidentified Speaker, -
MINNEAPOLIS, MEMPHIS. I WOULD ANTICIPATE THOSE CITIES WILL CONTINUE TO HAVE NONSTOP SERVICE TO ORLANDO. AS RICHARD SAID, IT'S A VERY COMPETITIVE PLACE...
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| 00:57:42 |
Unidentified Speaker, -
REASONABLY PRICED AS A RESULT OF THE CAPACITY. AS A RESULT OF FUEL, THERE MAY BE SOME FREQUENCY ADJUSTMENTS BUT CONTINUE TO BE NONSTOP SERVICE FROM...
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| 00:58:14 |
Unidentified Speaker, -
SERVED ORLANDO OTHER THAN FROM ONE OF OUR HUBS. >> I HAVE ONE QUESTION. I'D LIKE TO DIRECT IT TO BOTH
|
| 00:58:21 |
Unidentified Speaker, -
OF YOU. I'M INTERESTED IN THREE SPECIFIC ISSUES. TELL ME THE IMPACT ON THESE ISSUES WITH THE MERGE SOMEWHERE WITHOUT THE MERGER. WHAT IMPACT IS THERE...
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| 00:58:39 |
Unidentified Speaker, -
IMPACT IS THERE ON JOBS FOR AIRLINE EMPLOYEES WITH THE MERGER AND WITHOUT? I'LL LEAVE THAT TO BOTH OF YOU. >> TICKET PRICES, THE MARKETS WILL STILL...
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| 00:59:07 |
Unidentified Speaker, -
INCREASED BECAUSE YOU'RE HOOKING TWO END TO END NETWORKS. WHILE IT MAY NOT SOUND LIKE A LOT BUT PASSENGERS WILL HAVE ANOTHER WAY TO GET FROM LINCOLN,...
|
| 00:59:19 |
Unidentified Speaker, -
NEW COMBINATIONS
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| 00:59:20 |
Unidentified Speaker, -
THAT COMBINING THE RED AND
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| 00:59:21 |
Unidentified Speaker, -
THE BLUE ON THAT MAP WILL
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| 00:59:23 |
Unidentified Speaker, -
CREATE THAT WE WILL NOT BE ABLE TO DO ON OUR OWN. WE WILL NOT BE ABLE TO DO IT ON OUR OWN. WITH RESPECT TO JOBS, WE'VE MADE A COMMITMENT THAT NO...
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| 01:00:22 |
Unidentified Speaker, -
MEMPHIS/AMSTERDAM FLIGHT. NORTHWEST/KLM HAVE A VENTURE. BUT FOR THAT, THERE WOULD BE NO FLIGHT ALONG THE LINES. I THINK WE'VE ANSWERED THE EMPLOYMENT...
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| 01:00:53 |
Unidentified Speaker, -
WITH RESPECT TO
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| 01:00:54 |
Unidentified Speaker, -
EMPLOYEES AND STAFFING, THAT IT
|
| 01:00:56 |
Unidentified Speaker, -
WOULD REALLY JUST INVOLVE CORPORATE
|
| 01:00:59 |
Unidentified Speaker, -
STAFF REDUNDANCIES? >> CORRECT. >> OKAY. WHAT DOES THAT MEAN? DOES THAT MEAN MANAGEMENT
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| 01:01:05 |
Unidentified Speaker, -
LEVEL? >> YES. >> POSITIONS ONLY? OKAY. THAT'S THE ONLY AFFECT THAT THIS MERGER WILL HAVE ON EMPLOYEES? >> CORRECT. >> OKAY. DURING THE MERGER NEGOTIATIONS,...
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| 01:01:21 |
Unidentified Speaker, -
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| 01:01:22 |
Unidentified Speaker, -
AT THE TABLE? >> WELL, NORMALLY IN A
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| 01:01:25 |
Unidentified Speaker, -
MERGER NEGOTIATION, IT'S NEGOTIATION BETWEEN
|
| 01:01:28 |
Unidentified Speaker, -
THE TWO CORPORATIONS. >> AND YOU ALL ARE FAMILIAR WITH THE LETTER THAT
|
| 01:01:34 |
Unidentified Speaker, -
YOU RECEIVED
|
| 01:01:35 |
Unidentified Speaker, -
FROM 26 SENATORS, I BELIEVE, EARLIER THIS WEEK, ASKING QUESTIONS ABOUT THIS AS WELL? ASKING ABOUT THE ENGAGEMENT
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| 01:01:45 |
Unidentified Speaker, -
OF EMPLOYEES UNIONS AND THE MERGER PROCESS. HAVE YOU RESPONDED TO THAT LETTER FORMALLY OR WOULD YOU LIKE TO RESPOND TO
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| 01:01:52 |
Unidentified Speaker, -
THAT HERE TODAY? >> SURE. THE TRANSACTION IS CONTEMPLATED WITH RESPECT TO SEVERAL ISSUES. ONE, WE'VE MADE THE COMMITMENT WITH RESPECT TO NO FRONT LINE...
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| 01:02:15 |
Unidentified Speaker, -
AN OUTRIGHT GRANT OF STOCK SO THEY CAN SHARE IN THE BENEFITS THAT ARE CREATED. THIRD, WE'VE COMMITTED IN THE MERGER AGREEMENT, AND THERE'S BEEN LEGISLATION...
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| 01:03:24 |
Unidentified Speaker, -
IT'S ALSO A MATTER OF FEDERAL LAW. >> SO IN THAT COMMITMENT TO THOSE EMPLOYEES WHAT FORM OF -- WHAT IS THE ACTUAL FORM OF THAT COMMITMENT? >> WELL, IT'S...
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| 01:03:42 |
Unidentified Speaker, -
REAUTHORIZATION LAST DECEMBER. AND THERE IS A PROVISION IN AIRLINE LAW
|
| 01:03:49 |
Unidentified Speaker, -
CALLED ALLEGHENY MOHAWK LABOR PROTECTIVE PROVISIONS. THEY CAME OUT OF A MERGER IN THE INDUSTRY THAT BECAME PART
|
| 01:03:57 |
Unidentified Speaker, -
OF US AIR PROBABLY 40, 50 YEARS AGO. AND IT'S BEEN SORT OF THE RECOGNIZED STANDARD IN THE INDUSTRY FOR SENIORITY INTEGRATION. AND LAST DECEMBER,...
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| 01:04:52 |
Unidentified Speaker, -
BY THE ASSOCIATION OF
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| 01:04:54 |
Unidentified Speaker, -
FLIGHT ATTENDANTS. THEY HAVE EXPRESSED CONCERN THAT YOU'RE INTERFERING WITH THEIR ATTEMPT TO ORGANIZE DELTA FLIGHT ATTENDANTS THROUGH A GIVE A RIP...
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| 01:05:11 |
Unidentified Speaker, -
EFFORTS? >> WE -- DELTA HAS A LONG HISTORY OF WORKING WITH ITS EMPLOYEES. IF YOU GO BACK BEHIND PRIOR TO ITS BANKRUPTCY, IT WAS ALWAYS NOTED AS ONE...
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| 01:05:33 |
Unidentified Speaker, -
IN A CAMPAIGN LIKE THAT.d[ WE SUPPORT A DEMOCRATIC PROCESS. WE HAVE BOTH UNION EMPLOYEES, THE DISPATCHERS AND OUR PILOTS AND NONUNION EMPLOYEES MANY...
|
| 01:06:13 |
Unidentified Speaker, -
ADVOCACY FROM ONE SIDE OR THE OTHER? ARE YOU IN A NEUTRAL POSITION? >>
|
| 01:06:18 |
Unidentified Speaker, -
WE ARE -- WE ARE BEING CERTAIN THAT WE DO NOT ENGAGE IN ANY INTERFERENCE IN THE ELECTION AND THAT WE MAKE CERTAIN THAT THAT -- THAT THE ELECTION ...
|
| 01:06:33 |
Unidentified Speaker, -
QUESTION. ARE YOU NEUTRAL? >> I'M NEUTRAL TO THE EXTENT THAT WE WILL ALWAYS FOLLOW THE NNB RULES AND WE WILL
|
| 01:06:40 |
Unidentified Speaker, -
BE CERTAIN THAT THE LABORATORY CONDITIONS THAT THE MMB PRESCRIBES ARE COMPLIED WITH AT DELTA FOR A FREE ELECTION. >> WELL, I WILL TAKE YOUR ANSWER ...
|
| 01:06:52 |
Unidentified Speaker, -
REALLY ANSWERING MY QUESTION AS THE ANSWER, BUT THANK YOU. >> THANK
|
| 01:06:56 |
Unidentified Speaker, -
YOU VERY MUCH. >> YOU'RE WELCOME. WE'VE BEEN JOINED BY CONGRESSWOMAN SHEILA JACKSON LEE OF TEXAS. MR. HANG JOSON OF GEORGIA, ALTHOUGH NOT A MEMBER OF
|
| 01:07:11 |
Unidentified Speaker, -
THE TASK FORCE, IS ALWAYS WELCOME TO SIT WITH US.
|
| 01:07:18 |
Unidentified Speaker, -
WELCOME.
|
| 01:07:19 |
Unidentified Speaker, -
DARYL ISSA OF CALIFORNIA HAS JOINED OUR RANK. WE NOW TURN TO THE ABLE MEMBER FROM IOWA, MR. CHRIS CANNON. UTAH. >> UTAH. >> I'M SORRY. LAMAR SMITH,...
|
| 01:07:53 |
Unidentified Speaker, -
THIS ONE DOESN'T LEAD TO
|
| 01:07:56 |
Unidentified Speaker, -
OTHER MERGERS OF AIRLINES THAT ARE
|
| 01:08:00 |
Unidentified Speaker, -
LESS COMPETITIVE OR MAYBE I SHOULD SAY MORE ANTI-COMPETITIVE. I HAVE A COUPLE OF QUESTIONS. THE FIRST ONE GOES TO HOW THIS MERGER WOULD BENEFIT CONSUMERS....
|
| 01:08:51 |
Unidentified Speaker, -
NEEDED TO DO. BY CREATING A SINGLE NETWORK, SO CONSUMERS WILL BE ABLE TO FLY ON ONE AIRLINE OVER A MUCH LARGER VARIETY AND GEOGRAPHIC SCOPE OF DESTINATIONS,...
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| 01:10:07 |
Unidentified Speaker, -
NETWORK. SO, FOR
|
| 01:10:09 |
Unidentified Speaker, -
CORPORATIONS THAT DO BUSINESS GLOBALLY, 3M IN THE TWIN CITIES, THEY'LL HAVE ACCESS TO PARTS OF THE WORLD THAT THEY PREVIOUSLY DIDN'T HAVE ACCESS AND...
|
| 01:11:02 |
Unidentified Speaker, -
THAT EMPLOYEES THAT MIGHT BE OPERATING THE RESERVATION SYSTEM OR THOSE TYPES OF SUPPORT STAFF MIGHT WELL FIND THEMSELVES IN POSITIONS WHERE THEIR JOBS...
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| 01:11:45 |
Unidentified Speaker, -
ARE IN THE CORPORATE HEADQUARTERS. >> COMBINED -- IF I CAN TAKE A SHOT -- THE COMBINED
|
| 01:11:52 |
Unidentified Speaker, -
AIRLINE IN THE MERGED WORLD, BECAUSE THERE'S NO OVERLAP,
|
| 01:11:56 |
Unidentified Speaker, -
THE HUBS WILL REMAIN AND THE NETWORK WILL REMAIN, YOU KNOW, LARGELY INTACT, THE EXPECTATION IS THAT YOU'LL HAVE, YOU KNOW, THE SAME NUMBER, IF NOT MORE...
|
| 01:12:10 |
Unidentified Speaker, -
THE TOTAL NUMBER OF PEOPLE WHO MIGHT LOSE THEIR JOBS? >> WE HAVE -- I MEAN -- IT'S HARD TO SAY. I HAVEN'T REALLY DONE THAT BIT OF GRANULAR ANALYSIS...
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| 01:12:30 |
Unidentified Speaker, -
HAVE AN IDEA OF HOW MANY YOU'RE TALKING ABOUT. >> UNDER A THOUSAND. >> SOME NUMBER UNDER A THOUSAND. BUT WE HAVEN'T DONE THE
|
| 01:12:38 |
Unidentified Speaker, -
BOTTOMS-UP. WE HAVEN'T ON THAT LEVEL -- >> YOU'VE BEEN GENERAL AS TO WHAT YOU WOULD DO FOR FOLKS LOSING THEIR JOBS. CAN YOU BE SPECIFIC ABOUT ...
|
| 01:12:48 |
Unidentified Speaker, -
PACKAGES OR WHAT YOU'VE DONE IN THE PAST? >> DELTA HAS A VOLUNTARY PROGRAM BECAUSE AS PARTHF
|
| 01:12:53 |
Unidentified Speaker, -
THIS FUEL PRICE RUN-UP, WE'VE REDUCED --
|
| 01:12:55 |
Unidentified Speaker, -
WE NEED TO REDUCE OUR FULL-TIME EMPLOYEES BY ABOUT 2,000 PEOPLE. AND WE PUT TOGETHER A
|
| 01:13:02 |
Unidentified Speaker, -
PACKAGE WHERE WE'VE REDUCED THE RETIREMENT AGE. AND WE PROVIDE THE RULE OF 60, YOU GET LIFETIME PASSES
|
| 01:13:11 |
Unidentified Speaker, -
AND I BELIEVE IT'S A WEEK OF PAY FOR EVERY YEAR OF SERVICE. AND WE PROVIDE A HEALTH BENEFIT AND DISABILITY BENEFIT. AND WE DO THAT FOR BOTH PEOPLE WITH...
|
| 01:13:58 |
Unidentified Speaker, -
THAT WE ARE DOING. I THANK THE CHAIRMAN FOR ACKNOWLEDGING ME. I HAD TO GO TO THE FLOOR
|
| 01:14:02 |
Unidentified Speaker, -
FOR THE COAST GUARD BILL. I DIDN'T WANT TO
|
| 01:14:07 |
Unidentified Speaker, -
MISS THE OPPORTUNITY TO QUERY WHAT I THINK HAS TO BE
|
| 01:14:10 |
Unidentified Speaker, -
ONE OF THE MAJOR MERGER CONCEPTS, AND THAT IS OVERALL AIRLINES. LET ME, FIRST OF ALL, I WANT TO ACKNOWLEDGE TWO DISTINGUISHED GENTLEMEN, FORMER SECRETARY...
|
| 01:15:38 |
Unidentified Speaker, -
I MIGHT ADD, ARKANSAS AND A NUMBER OF OTHERS THAT BORDER THE STATE OF TEXAS. WOULD YOU GENTLEMEN COMMIT TO THE PASSENGER BILL OF RIGHTS OR TALK ABOUT...
|
| 01:16:24 |
Unidentified Speaker, -
THAT ARE CONTRACTUALLY ENFORCIBLE BECAUSE WE WANTED TO MAKE SURE IF WE DID MAKE A MISTAKE, THERE WOULD BE RECOURSE. AS LONG AS PROVISIONS ARE PROPERLY...
|
| 01:17:06 |
Unidentified Speaker, -
GENERAL ISSUED A SERIES
|
| 01:17:09 |
Unidentified Speaker, -
OF RECOMMENDATIONS WITH RESPECT TO CUSTOMER RIGHTS. WE ENDORSED THOSE RECOMMENDATIONS. AND THEY ARE LEGALLY ENFORCIBLE AGAINST DELTA TODAY BECAUSE...
|
| 01:17:42 |
Unidentified Speaker, -
ARE CONCEPTS WE WOULD AGREE TO. >> GENTLEMEN, WHAT I WOULD ADVOCATE VERY STRONGLY IS THAT THERE IS A VERY GOOD INITIATIVE MAKING ITS WAY THROUGH CONGRESS...
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| 01:17:53 |
Unidentified Speaker, -
IN PARALLEL AND CONTINGENT TO THE, IF YOU WILL, UNITING EFFORT OF THIS MERGER. LET ME QUICKLY HAVE YOU ANSWER, AGAIN,
|
| 01:18:05 |
Unidentified Speaker, -
THE QUESTIONS. CAN YOU ASSURE US DEFINITIVELY THAT YOUR FLIGHT ATTENDANTS, MECHANICS AND OTHERS PART OF THE STRUCTURE OF THE AIRLINES WILL NOT BE...
|
| 01:18:58 |
Unidentified Speaker, -
EVERYBODY INVOLVED, SEPARATE AND APART FROM FUEL PRICES. WE, OF COURSE, WOULD LOVE TO HAVE A MORATORIUM ON AVIATION TAXES AND WOULD WELCOME THAT AT...
|
| 01:20:15 |
Unidentified Speaker, -
IF YOU SEE FUEL BEING AT $118
|
| 01:20:18 |
Unidentified Speaker, -
A BARREL, THE PRICE PER BARREL TO REFINE IT IS IN THE $30 TO $40 RANGE. WE ARE REALLY PLAYING CLOSE TO $150 A BARREL FOR JET FUEL, WHICH IS ALL-TIME...
|
| 01:20:52 |
Unidentified Speaker, -
OF REFINING. >> LET ME THANK THE WITNESSES, MR. CHAIRMAN. I THINK A PASSENGER BILL OF RIGHTS SHOULD BE A TWIN TO ANY POTENTIAL MERGER AND WITH THAT...
|
| 01:21:15 |
Unidentified Speaker, -
WE HAVE A MARKUP ON THE COMMITTEE THAT I'M A RANKING MEMBER OF. I THANK YOU FOR HOLDING THIS HEARING. MR. ANDERSONER YOUR PREDECESSOR
|
| 01:21:25 |
Unidentified Speaker, -
OPPOSED THE
|
| 01:21:27 |
Unidentified Speaker, -
MERGER WITH U.S. AIR RECENTLY.
|
| 01:21:31 |
Unidentified Speaker, -
WHY IS THIS MERGER DIFFERENT? >> WELL, YOU'VE GOT TO PUT THE U.S. AIR TRANSACTION IN CONTEXT. THAT WASN'T A MERGER. THAT WAS A HOSTILE INVASION. AND...
|
| 01:21:55 |
Unidentified Speaker, -
YOUR EMPLOYEES IN YOUR COMMUNITIES. SO, ONE, THIS IS NOT A HOSTILE TAKEOVER. THIS IS A MERGER BY AGREEMENT. SECOND, THE REASON WHY THAT TRANSACTION...
|
| 01:23:26 |
Unidentified Speaker, -
PLAN LAING AT BOTH AIRLINES THE GOAL WOULD BE ADD INTERNATIONAL SERVICE. EACH OF E AIRLINES HAS A LONG-TERM GOAL OF INCREASING THE PERCENTAGE OF ITS...
|
| 01:23:37 |
Unidentified Speaker, -
TO NEARLY 50% OF THE TOTAL. WE'RE BOTH AT ABOUT 40% OF OUR TRAFFIC IS INTERNATIONAL. AND THE GOAL WITH THIS MERGER AND OUR ALLIANCE WITH SKY TEAM...
|
| 01:24:14 |
Unidentified Speaker, -
KNOW FOR SURE WHAT ALL OF THE BENEFITS WERE AT THAT TIME. BUT I CAN TELL YOU, IN THIS CASE, WE COLLECTIVELY CREATE AN EXCESS OF $1 BILLION IN BENEFITS...
|
| 01:24:30 |
Unidentified Speaker, -
ECONOMY. >> THANK YOU. WE COULD END UP IN A WORLD WHERE WE GO FROM SIX MAJOR CARRIERS TO THREE. AND I HAVE SOME CONCERNS ABOUT THAT, AS I THINK PROBABLY...
|
| 01:24:51 |
Unidentified Speaker, -
ARE YOU THINKING ABOUT GROUPS LIKE EXPEDIA, TRAVEL LOSSTY AND HOW THEY GET INFORMATION, WHAT ROLE THEY PLAY IN THE FUTURE, HOW TO MAKE SEATS AVAILABLE...
|
| 01:25:29 |
Unidentified Speaker, -
TICKETS, HOTWIRE, THERE ARE DOZENS OF THESE SITES. AND THE AIRLINES DO NOT CONTROL THE COMPUTERIZED RESERVATION SYSTEMS. THOSE ARE OPERATED BY INDEPENDENT...
|
| 01:26:30 |
Unidentified Speaker, -
PAY FOR EACH BOOKING AND IT'S TURNED INTO A VERY IMPORTANT AND POWERFUL DISTRIBUTION TOOL AROUND THE WORLD. >> THANK YOU. I SEE MY TIME'S EXPIRED BUT...
|
| 01:26:48 |
Unidentified Speaker, -
INTERNET, THEY HAVE SOME OF THE MOST POWERFUL SEARCH ENGINES THAT HAVE EVER BEEN DEVELOPED AND YOU CAN PUSH A BUT
|
| 01:26:56 |
Unidentified Speaker, -
THAN SAYS LOWEST APPLICABLE FARE AND DISPLAYED IN FRONT OF YOU IS THE INVENTORY OF EVERY POSSIBLE WAY TO GET FROM POINT A
|
| 01:27:04 |
Unidentified Speaker, -
TO POINT BMT B AND THIS SEARCH ENGINE WILL HUNT OUT THE LOWEST FARE AND GIVE THE CONSUME THAT INFORMATION WHICH MAKES THE CONSUMER AN EXTRAORDINARILY...
|
| 01:27:38 |
Unidentified Speaker, -
CHAIRMAN. GENTLEMEN, YOU KNOW, THIS COMMITTEE HAS ASKED A LOT OF QUESTIONS AND THEY'RE ALL GOOD QUESTIONS AND THEY'RE ALL LOCAL. ABOUT AS A SAN DIEGAN
|
| 01:27:48 |
Unidentified Speaker, -
PLAYING TWICE AS MUCH TO FLY FROM DULLES TO SAN DIEGO AS I WOULD PAY FROM DULLES TO LOS ANGELES, THERE'S ALWAYS GOING TO BE SOME LOCAL ISSUES OF DEREGULATION
|
| 01:27:59 |
Unidentified Speaker, -
HAS NOT BEEN AS LOGICAL IN ITS SELECTION OF PRICES. SO I AM CONCERNED ABOUT COMPETITION GOING FORWARD. AND THAT'S WHAT I'M GOING TO TALK ABOUT TODAY....
|
| 01:30:15 |
Unidentified Speaker, -
OPPORTUNITIES THAT THAT CUSTOMER HAS. THEY CAN FLY NORTHWEST OVER DETROIT, MINNEAPOLIS. THEY CAN FLY AMERICAN OVER DALLAS, CHICAGO. THEY CAN FLY UNITED...
|
| 01:31:40 |
Unidentified Speaker, -
AT@zzyzr+s$;sppz YOU ARE LOOKING AT THE AIRLINES AS THEY BOTH CAME OUT OF THE RESTRUCTURING PROGRAM. >> NO, WHAT I'M SAYING IS THAT IF WE LOOK AT YOU...
|
| 01:33:11 |
Unidentified Speaker, -
WOULD LIKE TO MAKE -- WE WOULD BE ASKING YOU, I ASSUME, DO YOU HAVE A PLAN TO CUT ENOUGH COSTS TO SURVIVE? AND I ASSUME WE WOULD BE ASKING YOU HOW YOU...
|
| 01:34:09 |
Unidentified Speaker, -
FIND THE SAME, JUST NOT AS BAD. I'M THE ONLY ONE WHO SITS ON A PUBLIC BOARD. I AM WELL AWARE OF WHAT WE HAVE TO DO IN ORDER TO
|
| 01:34:18 |
Unidentified Speaker, -
MEET SEC FOR WHAT WE PUBLISH. WHAT I'M SAYING IS AREN'T WE LOOKING IN 2007 AT THE BRIGHTEST, MOST POSITIVE SCENARIO IN THE PREVIOUS FIFE YEARS? ...
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| 01:34:56 |
Unidentified Speaker, -
PANELISTS.
|
| 01:34:57 |
Unidentified Speaker, -
PANELISTS. AS YOU CAN SEE, WE HAVE A VERY INQUIRING NUMBER OF MEMBERS
|
| 01:35:07 |
Unidentified Speaker, -
ON THE COMMITTEE OF VARIED BACKGROUNDS THAT WILL, WE ASSURE YOU WILL SCRUTINIZE YOUR STATEMENTS AND PAPERS SUBMITTED WITH GREAT CARE. WE THANK YOU...
|
| 01:35:43 |
Unidentified Speaker, -
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| 01:35:45 |
Unidentified Speaker, -
|
| 01:35:46 |
Unidentified Speaker, -
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| 01:35:47 |
Unidentified Speaker, -
PANEL. >> WE WELCOME SHOOK, MR. CLIFFORD WINSTON, MR. DOUG MORMAN AND MR. BUFFENBURGER. WE'LL START WITH MR. MR. BUFFENBURGER.
|
| 01:37:15 |
Unidentified Speaker, -
INTERNATIONAL PRESIDENT OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS. THE SON OF AN IAM MEMBER, MR. BUFFENBURGER HAS BEEN WITH IAM FOR OVER 30 YEARS....
|
| 01:38:37 |
Unidentified Speaker, -
IN NORTH AMERICA. I HAVE SUBMITTED MY FULL STATEMENT FOR THE RECORD. SO I WILL ONLY SUMMARIZE MY TESTIMONY HERE. IT IS MY FIRM BELIEF, AND THE BELIEF...
|
| 01:45:53 |
Unidentified Speaker, -
HE WAS FORMERLY VICE PRESIDENT OF GOVERNMENT AFFAIRS, AND PRIOR TO JOINING THE CHAMBER MR. MORMON SERVED AS THE EXECUTIVE ASSISTANT FOR BUSINESS AND...
|
| 01:46:35 |
Unidentified Speaker, -
MORMON. I'M VICE PRESIDENT FOR THE CINCINNATI REIGONAL CHAMBER, AND I'M PLEASED TO REPORT WE ARE THE FIFTH CHAMBER OF COMMERCE IN THE UNITED STATES,...
|
| 01:51:33 |
Unidentified Speaker, -
AND ARTICLES. HE HAS A DEGREE FROM THE UNIVERSITY OF CALIFORNIA BERKELEY A MASTERS FROM THE LONDON SCHOOL OF ECONOMICS, AND Ph.D. IN ECONOMICS FROM...
|
| 01:52:09 |
Unidentified Speaker, -
ABOUT THE AIRLINE INDUSTRY. THERE'S A LOT OF DATA ABOUT THE INDUSTRY AND WE GET A GOOD IDEA HOW IT'S PERFORMING AND HOW TRAVELERS WELFARE AND INDUSTRY...
|
| 01:56:33 |
Unidentified Speaker, -
IN TERMS OF COMPETITIVE
|
| 01:56:35 |
Unidentified Speaker, -
POLICIES, GIVEN CONCERNS ABOUT MERGERS AND INTEREST IN WAYS OF TRYING TO HELP COMPETITION IN THE INDUSTRY, I WOULD URGE THIS COMMITTEE AND CONGRESS...
|
| 01:57:18 |
Unidentified Speaker, -
HER CARRIER. SHE SERVED AS ALASKA MASTER EXECUTIVE PRESIDENT, LOCAL FOUNDING PRESIDENT FOR LOCAL EXECUTIVE COUNCIL 39 AND NUMEROUS UNION COMMITTEES....
|
| 01:57:51 |
Unidentified Speaker, -
IT'S UNFORTUNATE THAT SINCE DEREGULATION OF MY INDUSTRY PROTECTIONS ARE IN PLACE FOR CONSUMERS AND COMMUNITIES IN THE EVENT OF A MERGER YET VIRTUALLY...
|
| 02:03:47 |
Unidentified Speaker, -
AWARE OF THIS BEFORE. BUT IT SOUNDS LIKE THEY'RE THUMBING THEIR NOSES AT YOU. IF THEY ARE DOING THAT NOW, I SHUTTER TO THINK WHAT THEY ARE GOING TO...
|
| 02:04:35 |
Unidentified Speaker, -
I CAN'T DESCRIBE HOW MASSIVE THEIR CAMPAIGN IS TO TRY AND MAKE SURE THAT THE DELTA FLIGHT ATTENDANTS DON'T VOTE. IT'S EXTRAORDINARY AND SOMETHING I'VE...
|
| 02:05:12 |
Unidentified Speaker, -
A VERY LARGE QUESTION. I WOULD LIKE TO POINT OUT THAT, IN THE YEAR SINCE DEREGULATION, WE BEGAN THE PROCESS WHEN CONGRESS AND THE INDUSTRY LEADERS...
|
| 02:05:33 |
Unidentified Speaker, -
MORE AIRLINES, NOT FEWER. WE WOULD HAVE MORE CHOICES, NOT LESS. WE WOULD HAVE BETTER SERVICE TO MORE LOCATIONS, NOT CUTS. LOWER FARES, BETTER POINT...
|
| 02:08:07 |
Unidentified Speaker, -
OUT. NOW, YOU'RE DEALING ON THIS COMMITTEE, MOSTLY, WITH A BUNCH OF LAWYERS AND WE'RE USED TO GETTING THE BUSINESS. I MEAN, WE UNDERSTAND THAT SELF-INTEREST...
|
| 02:09:41 |
Unidentified Speaker, -
WE DO NOT MAKE A DIME, A
|
| 02:09:44 |
Unidentified Speaker, -
PENNY, OR A EURO OUT OF THIS. >> SO, LET ME NOW TURN TO A
|
| 02:09:54 |
Unidentified Speaker, -
MORE NEUTRAL PARTY HERE. HERE'S YOUR COMMITTEE, YOUR JUDICIARY COMMITTEE. >> MAY I ANSWER THE QUESTION BEFORE? SOMETIMES WITH THE CARRIER AND THE...
|
| 02:10:14 |
Unidentified Speaker, -
ANYTHING TO GAIN HERE 37 BUT THE FLIGHT ATTENDANTS THIS IS THEIR CHOSEN KA REESHG IT'S NOT JUST A JOB, AND THEY'RE IN IT FOR THE LONG HAUL. AND IF AT...
|
| 02:10:23 |
Unidentified Speaker, -
END OF THE DAY THERE'S SOME GUARANTEES FOR THE FLIGHT ATTENDANTS AND THERE'S PRESS VATION, SOME NEUTRALITY WITH THE UNION ELECTION, OF COURSE THE FLIGHT...
|
| 02:11:21 |
Unidentified Speaker, -
TODAY. WHAT SAY YOU ABOUT HOW THE RANKING MEMBER OF THIS TASK FORCE AND MYSELF AND STEVE COHEN AND ALL LADIES AND GENTLEMEN OF THE CONGRESS ON THIS COMMITTEE...
|
| 02:12:47 |
Unidentified Speaker, -
THAT AIRLINE DEREGULATION DEREGULATION, BASED ON THE IMPYRE CAL EVIDENCE, GENERATED SUBSTANTIAL BENEFIT TO CONSUMERS. YOU CAN SEE THAT CLEARLY IN THE...
|
| 02:16:53 |
Unidentified Speaker, -
IN THIS DISCUSSION, AND I WOULD LIKE TO RECOGNIZE STEVE CHABOT NOW. >> THANK YOU. I'LL TRY TO BE BRIEF. QUESTIONS. IF I COULD, JUST FOLLOW UP WITH...
|
| 02:17:23 |
Unidentified Speaker, -
AND COMPETITION AND THE ECONOMIC REALITIES OF THE AIRLINE INDUSTRY, THAT IT'S IN THE BEST INTERESTS OF CERTAINLY THE EMPLOYEES THAT YOU REPRESENT,...
|
| 02:18:06 |
Unidentified Speaker, -
AN INFORMED DECISION. >> MR. BUFFENBARGAIN. >> PLEASE REST ASSURED, CONGRESSMAN CHABOT, THAT WE ARE OPPOSED TO THE MERGER. WE HAVE DEALT, FOR MANY...
|
| 02:18:29 |
Unidentified Speaker, -
HAVE A LONG EXPERIENCE BASED
|
| 02:18:31 |
Unidentified Speaker, -
ON THE FACT THAT WE TOOK SERIOUS CUTS AT NORTHWEST AIRLINES. WE TOOK STOCK IN RETURN. OUR MEMBERS, IN THE NEW MODEL, WORKED THEIR TAILS OFF TO MAKE...
|
| 02:19:44 |
Unidentified Speaker, -
OF THOSE THAT ARE FLYING, WE WANT THE JOBBED
|
| 02:19:47 |
Unidentified Speaker, -
TO BE KEPT IN THE AREA,
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| 02:19:49 |
Unidentified Speaker, -
WHETHER THEY'RE UNION OR NONUNION JOBS. WE WANT THE JOBS TO STAY THERE. WE WANT THE LOW ECONOMY TO CONTINUE TO THRIVE TO THE EXTENT THAT IT CAN IN...
|
| 02:20:54 |
Unidentified Speaker, -
YEAR A CONSULTING SERVICES LOCATED ITS NORTH AMERICAN HEADQUARTERS AND INFORMATION TECHNOLOGY BUSINESS IN CINCINNATI. THE REASON IT DID SO WAS BECAUSE...
|
| 02:22:47 |
Unidentified Speaker, -
HIGHEST IN THE NATION AND THAT A LOT OF THE FOLKS IN OUR AREA DRIVE TO DAYTON, COLUMBUS, INDIANAPOLIS, LOUISVILLE, TO TAKE ADVANTAGE OF THE LOWER RATES...
|
| 02:23:26 |
Unidentified Speaker, -
OUR COMMUNITY HAS BEEN LOYAL CUSTOMERS. WE HAVE PAID THAT PREMIUM. I THINK OUR LEVEL OF TOLERANCE FOR PAYING THAT PREMIUM IS REACHING A TIPPING POINT,...
|
| 02:24:42 |
Unidentified Speaker, -
TO DO THAT. MR. CHAIRMAN, DO I HAVE ADDITIONAL TIME OR AM I OUT? >> YOU HAVE AS MUCH TIME AS YOU DESIRE. >> I WILL HAVE ONE MORE QUESTION. THANK YOU,...
|
| 02:25:07 |
Unidentified Speaker, -
TRENDS CONTINUE? >> LET'S
|
| 02:25:09 |
Unidentified Speaker, -
NOT FORGET THAT 2006 AND 2007 WERE MODESTLY PROFITABLE YEARS AMBASSADOR THE HUGE LOSSES FOLLOWING SEPTEMBER 11th. IN NO INDUSTRY COULD REALLY TAKE...
|
| 02:25:30 |
Unidentified Speaker, -
IN '06 AND '07 AND NOW ARE LOSING MONEY AGAIN. THEY HADN'T RECOVERED YET. >> I'LL INTERRUPT YOU. >> BECAUSE OF THE HIGH FUEL PRICES? >> NO. NO. ...
|
| 02:25:59 |
Unidentified Speaker, -
11th THROUGH 2005 THERE WERE HUGE
|
| 02:26:02 |
Unidentified Speaker, -
LOSSES. THINGS GOT BETTER IN '06 AND '07 BUT NOT EVEN CLOSE
|
| 02:26:05 |
Unidentified Speaker, -
TO WHAT THEY LOST. AND NOW WE'RE STARTING DOWN AGAIN. >> RELATED TO FUEL PRICES? >> NOW,
|
| 02:26:15 |
Unidentified Speaker, -
YES. FUEL PRICES AND ANY OTHER MACRO ECONOMIC SLOWDOWN SURE
|
| 02:26:19 |
Unidentified Speaker, -
TO THE EXTENT THE ECONOMY IS SLOWING BECAUSE OF THE SUBPRIME MORTGAGE THAT WILL OBVIOUSLY HURT, TOO. THE COMBINATION -- A NUMBER OF THEM ARE VULNERABLE....
|
| 02:26:32 |
Unidentified Speaker, -
PANEL. >> THANK
|
| 02:26:35 |
Unidentified Speaker, -
YOU VERY MUCH. WE TURN NOW TO OUR DISTINGUISHED MEMBER FROM TENNESSEE. >> THANK YOU, MR. CHAIRMAN.
|
| 02:26:49 |
Unidentified Speaker, -
MR. MOORMAN, IS YOUR CHAMBER COME OUT AND TAKEN A POSITION ON THIS MERGER? >> WE HAVE NOT ISSUED A FORMER STATEMENT
|
| 02:26:58 |
Unidentified Speaker, -
ON THE MERGER BUT AS WE INDICATED IN OUR TESTIMONY WE DO BELIEVE THAT IF DELTA MERGING WITH NORTHWEST IS WHAT MAKES DELTA A
|
| 02:27:08 |
Unidentified Speaker, -
SUSTAINABLE FINANCIALLY VIABLE CORPORATION BECAUSE OF OUR REGION'S RELIANCE ON DELTA, WE THINK THAT THAT IS A POSITIVE WAY TO GO. >> SO YOU
|
| 02:27:17 |
Unidentified Speaker, -
ARE CONCERNED IF THEY DON'T MERGE THERE'S A POSSIBILITY THAT DELTA COULD NO LONGER BE A VIABLE AIRLINE? >> I WOULD NOT GO SO FAR AS TO SAY THAT. I WOULD...
|
| 02:27:38 |
Unidentified Speaker, -
WOULD. WE BELIEVE THAT CINCINNATI IS IN A VERY IMPORTANT PART OF THE DELTA NETWORK EITHER IN A MERGED ENVIRONMENT OR NOT. WE
|
| 02:27:45 |
Unidentified Speaker, -
HAVE A SMALLER HUB THAN WE DID AT ONE POINT IN TIME BUT WE DO BELIEVE BASED ON EVERYTHING THAT DELTA TOLD US THAT WE WOULD CONTINUE TO BE A HUB OPERATION....
|
| 02:27:54 |
Unidentified Speaker, -
ANY REASON TO BELIEVE THAT CINCINNATI AND MEMPHIS ARE IN ME
|
| 02:27:58 |
Unidentified Speaker, -
WAY PITTED AGAINST EACH OTHER IN THAT ONE OR THE OTHER MIGHT LOSE A HUB? >> WE HAVE NO EVIDENCE FROM THAT ASIDE FROM OUR OWN SUSPICIONS BECAUSE OF THE...
|
| 02:28:14 |
Unidentified Speaker, -
BE WITHOUT A HUB IF THE MERGER GOES THROUGH? >> WE HAVE SUSPICIONS BUT WE HAVE BEEN ASSURED BY DELTA IN CONVERSATION WITH TOP OFFICIALS THAT THAT'S
|
| 02:28:26 |
Unidentified Speaker, -
NOT PART OF THAT ARE PLAN IN THE MERGER. >> TO
|
| 02:28:33 |
Unidentified Speaker, -
ELIMINATE EITHER CITY? >> RIGHT. >> DO YOU BELIEVE WITH THE MERGER THAT ALL
|
| 02:28:38 |
Unidentified Speaker, -
OF THE HUBS WOULD REMAIN OPEN AND AT THE SAME LEVEL THAT THEY EXPERIENCE NOW? >> I WOULD BE SURPRISED. I MEAN, I DON'T KNOW -- AGAIN, AS I SAID BEFORE,...
|
| 02:28:54 |
Unidentified Speaker, -
ASSESSING THE MERGER
|
| 02:28:55 |
Unidentified Speaker, -
BUT GIVEN YOU ASKED THE QUESTION, I THINK
|
| 02:28:57 |
Unidentified Speaker, -
THAT THE MERGER MAKES SENSE TO HAVE A FUNDAMENTAL RESTRUCTURING OF THE NETWORK AND I WOULD EXPECT TO SEE CHANGES WHETHER IT BE HUBS, CERTAINLY ROUTES...
|
| 02:29:07 |
Unidentified Speaker, -
WE HAVE OBSERVED THAT IN THE >> BUT ON THE FRONT THEY SAID THERAPYN'T GOING TO DO IT? >> I'M SORRY? >> DID THEY SAY ON THE FRONT END THEY WEREN'T GOING...
|
| 02:29:33 |
Unidentified Speaker, -
KEY SYNERGY TO
|
| 02:29:36 |
Unidentified Speaker, -
DELTA-NORTHWEST IN MY VIEW. TO
|
| 02:29:37 |
Unidentified Speaker, -
BE ABLE TO TAKE ADVANTAGE OF NORTHWEST AND THINK OF TRYING TO ROUTE TRAFFIC TO GET A FAIR
|
| 02:29:43 |
Unidentified Speaker, -
AMOUNT OF THAT TRAFFIC ABROAD. . # IS THERE ANY REASON IN THE WORLD THAT THEY WOULD NOT JETTISON CINCINNATI INS TO THE MEMPHIS? [APPLAUSE] [LAUGHTER]...
|
| 02:31:19 |
Unidentified Speaker, -
BASIS FOR OUR AIR TRAFFIC CONTROL SYSTEM, ONE OF OUR PLACES TO TEST HIS MEMPHIS.
|
| 02:31:26 |
Unidentified Speaker, -
IT IS A LOW-DENSITY AIRPORT TO BEGIN WITH, SO WHETHER THAT IS
|
| 02:31:31 |
Unidentified Speaker, -
IMPROVING THEIR ARRIVAL AND DEPARTURE IS HARD TO SAY. THEY ARE A TEST CASE WITH FEDEX. THAT IS ONE THING YOU MUST KEEP IN MIND ABOUT THEIR SERVICE. IN...
|
| 02:33:02 |
Unidentified Speaker, -
RIGHT NOW WE ARE FOCUSED ON THE DELTA FLIGHT ATTENDANTS, AND THEIR COLLECTION STARTED YESTERDAY, AND
|
| 02:33:09 |
Unidentified Speaker, -
BEYOND THAT WE WILL DO WHATEVER IT TAKES TO MAKE SURE THEY PROTECT THEIR COLLECTIVE BARGAINING RIGHTS. >> THE DIFFICULT THING IS, THE PUBLIC, BOTH OF...
|
| 02:33:45 |
Unidentified Speaker, -
IN MEMPHIS, AND BY FAR THESE WERE THE CLEAREST ANSWER, BUT THIS WAS THE PUBLIC, THEY FELT THAT THE INSERT WAS THEY WOULD KEEP THE HUB, AND THEY WOULD...
|
| 02:34:40 |
Unidentified Speaker, -
THANK YOU VERY MUCH. WE HAVE COMPETING SETS OF WHAT THE FACTS ARE. WE HAVE COMPETING PREDICTIONS OF WHAT
|
| 02:34:57 |
Unidentified Speaker, -
THE FUTURE WILL BE LIKE.
|
| 02:35:00 |
Unidentified Speaker, -
AND WE HAVE DIFFERENT VIEWS OF WHAT WILL HAPPEN IF THE MERGER OCCURS. AND IT IS NOT CLEAR TO ME THAT THE DEREGULATION 30 YEARS AGO HAS BEEN ALL THAT...
|
| 02:42:27 |
Unidentified Speaker, -
WHEN IT DID SO, IT SAID IT WOULD RETAIN THE MAXIMAL NUMBER OF EMPLOYES IT COULD, AND TO OUR UNDERSTANDING IT DID. WE HAVE 7000 DELTA EMPLOYEES WORKING...
|
| 02:43:34 |
Unidentified Speaker, -
SUSPICIONS, AND I THINK THAT IS THE PART OF IT. THERE IS DISTRUST. IT IS ON BOTH A PART OF LABOR AND
|
| 02:43:43 |
Unidentified Speaker, -
MANAGEMENT THAT IS NOT ENGAGING DIRECTLY ON A DAUNTING THAT TRUST, BUT THAT HAS BEEN GOING ON FOR MANY DECADES FOR SOME OF THESE CARRIERS. YOU DO NOT...
|
| 02:45:31 |
Unidentified Speaker, -
SPECIFIC-REGULATION YOU HAVE IN MIND? >> WHAT KIND OF RE-REGULATION COULD WE HAVE IN MIND IN THIS KIND OF DISCUSSION? >> THANK YOU, MR. CHAIRMAN. I...
|
| 02:45:52 |
Unidentified Speaker, -
TO 1978, WHEN ALSO THE COST OF FUEL WAS REGULATED AND MANAGED BY THE GOVERNMENT AND LEVELED THE PLAYING FIELD FOR THE AIRLINES.
|
| 02:45:59 |
Unidentified Speaker, -
MEANT THEY HAD TO USE THEIR BUSINESS LINES TO
|
| 02:46:03 |
Unidentified Speaker, -
FIGURE OUT OTHER WAYS TO COMPETE. I THINK THE WAY WE STRUCTURE WHO ACTUALLY MANAGES THE INDUSTRY, LET'S TALK ABOUT THAT FOR JUST A MINUTE. RIGHT NOW...
|
| 02:49:09 |
Unidentified Speaker, -
PEOPLE, LITERALLY ALL OF THE FINANCIAL MARKETS IN THE WORLD. AND IT IS A QUESTION NOW OF HOW DID THIS THING GET SO COMPLETELY OUT OF HAND, AND GUESS...
|
| 02:50:28 |
Unidentified Speaker, -
I YIELD BACK. >> WHAT ABOUT, THE REGULATION DOES NOT SOLVE PROBLEMS, IT CAN FREE ONLY CREATE PROBLEMS. -- DEREGULATIONS DOES NOT SOLVE PROBLEMS. >> YOU...
|
| 02:51:01 |
Unidentified Speaker, -
LET'S LOOK AT THE COMMENT ABOUT REGULATING FUEL PRICES. THINK IT THROUGH. WHAT WILL HAPPEN? WE START CAPPING THE PRICE OF OIL. WE HAVE BEEN DOWN THIS...
|
| 02:51:14 |
Unidentified Speaker, -
SUPPLIED SHOT, THAT IS, SUPPLY REDUCTION -- SUPPLY AND SHOCK. EVENTUALLY, PRESSURE TO "TAKE THEM OFF," AND THEN ALL OF A SUDDEN THROUGH THE ROOF. EVENTUALLY...
|
| 02:51:33 |
Unidentified Speaker, -
ITSELF OFF -- THE MARKET
|
| 02:51:37 |
Unidentified Speaker, -
SORTED ITSELF OUT. MARKETS DO HAVE DISTURBANCES. IT WOULD BE WRONG AND MISLEADING TO SAY THAT MARKETS ALWAYS PERFORM PERFECTLY. THEY DO NOT. THERE ARE...
|
| 02:52:56 |
Unidentified Speaker, -
THIS IS SOMETHING THE FINANCIAL MARKETS WILL LEARN FROM, AND I THINK YOU HAVE TO GO THROUGH
|
| 02:53:02 |
Unidentified Speaker, -
IT CAREFULLY THE FORCE OF CRAFTING REGULATIONS AND PLANNING MARKETS FOR THINGS, AND ACTUALLY ISOLATE WHAT IS RESPONSIBLE FOR WHAT, AND WHETHER REGULATION...
|
| 02:53:52 |
Unidentified Speaker, -
|
| 02:53:54 |
Unidentified Speaker, -
I WOULD INVITE YOU TO CHECK MIND AS WELL.
|
| 02:53:58 |
Unidentified Speaker, -
WE NEED TO TALK MORE ABOUT THE SUBPRIME BELT DOWN. THIS IS
|
| 02:54:06 |
Unidentified Speaker, -
NOT SOMETHING THAT IS IN
|
| 02:54:08 |
Unidentified Speaker, -
THE PAST. IT IS GETTING WORSE, AS YOU PROBABLY KNOW. >> ONCE AGAIN, I WOULD LIKE TO THANK YOU FOR THE OPPORTUNITY TODAY. AS I PREVIOUSLY MENTIONED, WE...
|
| 02:54:38 |
Unidentified Speaker, -
CONGRESSMAN, NEXT ON YOUR FLY TO CINCINNATI, I WOULD LIKE TO PUT TWO TOGETHER WITH SOME CINCINNATI FLIGHT ATTENDANTS AND CITY A RUSH OF INFORMATION THAT...
|
| 02:56:32 |
Unidentified Speaker, -
IT, CALLED THE GREAT DEPRESSION. AND WHAT BROUGHT US OUT OF IT WAS A REGULATION OF THE WORLD WE LIVE IN, NOT DE REGULATION.
|
| 02:56:43 |
Unidentified Speaker, -
WE NEED TO BEAR IN MIND THAT LESSONS FROM THE PAST ARE JUST AS A BRIDGE TODAY AS THEY WERE IN THE TIME OF FRANKLIN ROOSEVELT. THANK YOU. >> I THANK THIS...
|
| 02:57:16 |
Unidentified Speaker, -
COPYRIGHT NATIONAL CABLE SATELLITE CORP. 2008] [CAPTIONING PERFORMED BY NATIONAL CAPTIONING INSTITUTE] >> COMING UP NEXT, REMARKS
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.