Delta exec to answer state's merger questions

It looks as though Minnesota lawmakers will get their wish to hear from a Delta Air Lines executive concerning the carrier's planned merger with Northwest Airlines.

Delta President and Chief Financial Officer Ed Bastian will appear Monday before the Minnesota House Commerce and Labor Committee, Chairman Rep. Joe Atkins, DFL-Inver Grove Heights, announced.

Atkins had been complaining that Delta was ignoring his requests that the airline send an executive to answer questions about the company's planned purchase of Northwest.

When a Northwest executive appeared before his committee last week, Atkins joked that he would volunteer his frequent-flier miles to get a Delta executive to St. Paul. That never happened -- but some committee members did threaten to issue a subpoena.

The airlines don't need the state's permission to combine. But Northwest did promise to keep its headquarters in Minnesota in exchange for state-backed bonds and what amounts to a rent reduction at Minneapolis-St. Paul International Airport, which also applies to other airlines that fly out of the airport.

The state can force immediate repayment of the bonds if the headquarters leaves. Delta has said that the new airline will be based in Atlanta, Delta's home.

Minnesota Gov. Tim Pawlenty has said that he intends to enforce those commitments. But he said Wednesday that bills that would force the state to demand immediate repayment might not help.

"If we have legislation that says 'take it now,' then their hands are completely unhandcuffed. They can do whatever they want.

"We have no leverage over them," Pawlenty said.

ASSOCIATED PRESS