Merger speculation reaching a fever pitch

Various newspaper reports last week suggested that the next wave of consolidation among major airlines might be here very soon. Several reports speculated that Delta and Northwest could announce a tentative merger agreement as soon as this week, having apparently worked out their differences over which executives from the two companies would be in charge at a combined airline. News reports said that Delta CEO Richard Anderson would apparently remain the chief executive of a combined Delta/Northwest. And as Delta and Northwest move closer to an agreement, industry watchers are predicting that such a development would virtually force United and Continental to speed up their merger talks. Any such deals would face regulatory approval, and the reasoning is that merging airlines expect to win antitrust approval more easily from the Bush Administration than whoever might occupy the White House in 2009. But opposition could still come from the Democractic-controlled Congress. For instance, Rep. James Oberstar (D.-Minn.), who chairs the House committee in charge of transportation, is on record as saying he will work to block any merger of major airlines on the grounds that they would reduce competition, end service to smaller communities and eliminate jobs.