From Deseret News archives:
Salt Lake Council backs Delta
By a unanimous vote, the council approved a joint resolution with Mayor Rocky Anderson expressing a preference that Delta emerge from post-bankruptcy reorganization as a stand-alone carrier. Anderson, who is out of town for the week, signed the resolution before he left.
On Nov. 15, US Airways announced its intention to carry out a hostile takeover of Delta, which uses the Salt Lake City International Airport as one of its hubs. Delta executives have said they intend to remain independent, but the decision would ultimately be made by the airline's creditors and a New York bankruptcy judge.
The resolution also urged federal officials to "carefully scrutinize US Airways' unsolicited merger with Delta Air Lines to guard against the potential for anti-competitive behavior, to ensure a level of competition among airlines that will benefit the traveling public and to ensure that the high level of air service to Utah and the Intermountain West is continued."
Council Chairman Dave Buhler called Delta "a very important part of our community. They've been great corporate citizens." He echoed concerns of other Utah officials, who wonder whether US Airways, which already has a hub in Phoenix, would maintain a Salt Lake City hub.
"We are concerned that the proposed merger ... could negatively affect Salt Lake City's standing as a major airport hub," Anderson's spokesman Patrick Thronson said.
Since announcing its takeover bid, US Airways representatives have said the Salt Lake hub is safe, as it would serve cities different from those served by Phoenix. They also have reiterated their intention to keep all Delta employees on board.
"We feel that our merger proposal is in the best interest of all Delta stakeholders, including investors, creditors, employees and the communities we serve," US Airways spokesman Philip Gee said Tuesday in an e-mail.
Delta spokesman Anthony Black said the airline is "pleased to have the continued support of the city and its officials."
The resolution will be sent to Gov. Jon Huntsman Jr.'s office and to members of Utah's congressional delegation. In that regard, the resolution may be preaching to the choir.
Utah's two Republican congressmen, Rob Bishop and Chris Cannon , have issued a joint statement saying the takeover bid "causes us great concern, considering the excellent progress Delta has made in its corporate transformation, its importance to the state of Utah in terms of jobs and overall benefit to the economy and the potential economic harm a takeover attempt might bring to Utah's citizens, Delta employees and Delta passengers."
