Hatch urges caution in merger

WASHINGTON — The potential merger of US Airways and Delta Air Lines concerns Sen. Orrin Hatch, R-Utah, according to a letter he sent to U.S. Attorney General Alberto Gonzales Thursday.

Hatch and Sen. Herb Kohl, D-Wis., urged the Justice Department to "carefully and thoroughly consider the substantial competitive impact of this merger" should it get to the point of being reviewed."

"From what we are able to glean from publicly available information, there appears to be even more overlap between the US Airways and Delta route networks," Hatch and Kohl wrote. "These two airlines are strong domestic competitors in the East and Mountain West. Their merger would appear to result in a significant increase in concentration — especially on routes serving smaller communities — and could adversely affect Delta's hubs, as well as lead to a reduction in capacity and higher overall fares."

Delta has a hub at the Salt Lake City International Airport that some Delta employees fear would close under a merger, although US Airways has said it would do no such thing.

The senators said their letter does not "express a firm position on a potential transaction" but that they felt the need to "underscore our firm expectation that the Department will investigate this or any other merger among airlines of all sizes with all due care and vigor."

Kohl is chairman of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights where Hatch is the top Republican.

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