Utah cities fight Delta takeover

City councils across Utah are voicing their opposition to a hostile takeover attempt by US Airways to control bankrupt Delta Air Lines.

Delta, which uses the Salt Lake City International Airport as one of its main hubs, has been resisting merger attempts. To date, six Salt Lake County cities have signed resolutions against the US Airways proposal.

The resolutions have been sent to both airlines, said Dennis Tenney, Sandy City Council chairman, who is spearheading the effort. He said he hopes it sends a message to regulators in Washington, D.C.

"Delta Air Lines has created thousands of jobs for Utahns throughout the state, and a hostile takeover attempt by US Airways could very well spell the end of hundreds of jobs and millions of dollars in lost revenues to our citizens," he said. "This is a Utah issue and it's a bread-and-butter issue to Utahns everywhere who travel by air."

He added that it would negatively affect tourism and have a "ripple effect throughout the Utah economy."

To date, Salt Lake City, Sandy, Draper, South Salt Lake, Murray, South Jordan and West Valley City have all signed resolutions. They ask for a "thorough review by federal officials" of the proposed merger and note that Delta "is on track to exit bankruptcy in 2007." The carrier filed for Chapter 11 bankruptcy protection in September 2005.

In the next several weeks, Tenney said more cities along the Wasatch Front and in southern Utah are expected to pass similar resolutions.

"This has national implications as well because it sends a very negative message. The message that should be sent is competition is good and healthy and benefits everyone," he said. "This action flies in the face of competition and we the consumers and travelers and beneficiaries of the tourism industry, we're all losers if this hostile merger takes place."

---

E-mail: astowell@desnews.com