Delta CEO: Merger is all rumor

Nov. 16, 2007
Lawmakers grill Anderson

Washington --- Delta Air Lines CEO Richard Anderson went to Capitol Hill on Thursday to talk about relieving holiday travel crunches, but instead he spent much of his time deflecting merger speculation.

An avalanche of news stories a day earlier suggested that Delta and United Airlines are in negotiations, and as a result a pack of reporters greeted Anderson when he arrived for his previously scheduled testimony before a U.S. House transportation subcommittee.

He initially avoided media questions, but later told The Atlanta Journal-Constitution in an interview that he was surprised by the stories and has not talked with any high-ranking official of United since he came back to the airline industry in September.

"I haven't had a conversation, at all, with any executive since I came back to the airline industry," Anderson said. "The last time I had a conversation with [United Chairman CEO Glenn F.] Tilton was at an [Air Transport Association] meeting three or four years ago."

It was his strongest statement yet as both Delta and United attempt to quash rumors that the two are actively considering a merger.

"Nothing has really changed on this since we talked [in August] in Minneapolis," referring to an AJC interview at that time, when his hiring as Delta CEO was announced. "The story just took on a life unto itself."

By some accounts, the purported talks could result in a single airline bearing United's name and headquartered in United's home town of Chicago.

Anderson said he still believes there will be consolidation in the airline industry and he still wants Delta to be in the driver's seat of any merger. He has told members of the Georgia congressional delegation that he wants Delta to remain headquartered in Atlanta should any merger with any airline take place down the road.

But one wanted further assurances.

During the hearing, Rep. Lynn Westmoreland (R-Ga.) challenged the Delta CEO to assure him "eyeball to eyeball" that the Atlanta-based carrier was not involved in merger talks with United Airlines --- and Anderson complied.

Westmoreland, who said his district was home to more Delta employees than any other, told Anderson he was "disappointed to read in the paper" about the talks.

He said he had also read a statement Delta released Wednesday denying that such talks were taking place.

"I want to look at you eyeball to eyeball" and hear you deny it, too, Westmoreland told Anderson.

"I was as surprised as you were" to read the story, Anderson replied. "There are no discussions. There have been no discussions."

The congressman from Newnan recalled that he was a "ramp rat" for Delta, his daughter was a flight attendant for the airline, and his wife worked in marketing for Delta.

He said Delta is part of the Atlanta family, and "we don't want the family to move north."

Furthermore, he added, "I'm asking you to keep the family informed."

Anderson assured him he would do so.

In the interview, Anderson said he expects rumors of possible mergers and takeovers to increase as the industry braces for consolidation during the next few years.

Some airline officials expect the number of legacy carriers such as Delta to shrink from six to four in the next five years as carriers battle over capacity and soaring fuel costs.

Staff writer Bob Dart contributed to this article.