From Deseret News archives:

Utah joins antitrust probe into airline deal

Published: Wednesday, Dec. 20, 2006 9:32 a.m. MST
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Utah Attorney General Mark Shurtleff is joining officials in about a dozen states in launching an antitrust investigation into a proposed merger between US Airways and Delta Air Lines.

The attorneys general in those states want to see if the merger is anti-competitive and anti-consumer.

"On its face, it appears to be what we call a classic redundant merger," Shurtleff said in an interview Tuesday. "We have to look closer to see if the merger looks like it will result in fewer flights, fewer non-stops, fewer seats — and that means higher prices for Utahns."

Shurtleff said the National Association of Attorneys General, of which he is a member, is coordinating the multi-state antitrust investigation. This would be in addition to any review conducted by the U.S. Department of Justice.

"We've been very active, sometimes to the chagrin of the feds," he said. "Why would Utah want to be involved? It impacts 2 million Utahns and 6,000-plus Utah employees, and what does this do to the consumer?"

The investigation could include subpoena power. So far, Shurtleff said all his office has received from US Airways is a PowerPoint presentation on "why the merger is good."

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The leadership of the Utah State Legislature recently sent a letter to U.S. Attorney General Alberto Gonzales, urging a Justice Department review on the possible economic impacts "and the important competitive and economic consequences to the communities where these airlines serve."

Senate President John Valentine, R-Orem, said he is concerned that US Airways would close Delta's Salt Lake City hub if it were successful in the hostile takeover. US Airways has hubs in Las Vegas and Phoenix.

"You cannot operate three hubs in that area," Valentine said earlier this month.

Shurtleff said the states could pursue antitrust litigation against the airlines, or they could do nothing if the investigation deems the merger is not anti-competitive.

When contacted by the Deseret Morning News late Tuesday, US Airways said it had not been officially notified of any investigation.

"We've said we're confident any antitrust issue can be overcome," airline spokesman Morgan Durrant said.

Shurtleff appeared at a rally Tuesday at the Salt Lake City International Airport that was organized in support of Delta Air Lines' efforts to resist the takeover.

"It looks and smells like a redundant merger, and generally speaking, those are anti-competitive and anti-consumer and prices go up and service goes down," he said afterward. "We have a duty to protect Utah consumers."


E-mail: bwinslow@desnews.com

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