Snowe, airline CEO meet Merger plan spurs concern for BIA

Sen. Olympia Snowe met with U.S. Airways CEO Doug Parker in her Washington office Tuesday to voice opposition to the company’s proposed takeover of Delta Air Lines.

The 35-minute meeting focused on the effects the merger could have on services in smaller markets – like that of Bangor International Airport, Snowe said in a telephone interview Tuesday.

“I expressed my concern about the merger and what impact it will have on consumer and community services,” she said, adding that Parker assured her flight rates and other fares would most likely remain the same.

This marks her second meeting with an airline CEO in the past week regarding the $10.3 billion bid U.S. Airways proposed for Delta on Jan. 11.

She met with Delta Air Lines’ chief Jerry Grinstein last Thursday.

Both CEOs however, will answer more questions from the Senate Commerce Committee in a hearing set for noon today in Washington.

Some area officials fear that the combining of Delta and U.S. Airways could result in diminished services, fare increases, fewer flight choices and the loss of local jobs.

U.S. Airways’ initial bid for the Atlanta-based airline prompted some in the Bangor area, as well as Delta representatives, to oppose the hostile takeover.

Delta began federal bankruptcy protection proceedings in September 2005, and since has reduced its debt from $20 billion to about $10 billion.

Still, Snowe said, if the bid is approved, the remaining debt that U.S. Airways would inherit could leave some doubt among consumers.

“Continuing services at the current level is in jeopardy,” Snowe said.

Snowe said Parker was positive about the situation.

“I think they have good intentions,” Snowe said of U.S. Airways. “But there is no guarantee or assurance. It can be [guaranteed] today, but what about the future? It puts everything in considerable uncertainty.”

Snowe, a senior member of the Senate Commerce Committee, which has jurisdiction over legislation affecting the airline industry, expects to dissect the bid and its situation during the hearing.

“We have an obligation to review this merger,” Snowe said. “We will scrutinize every aspect of it.”

Delta employs some 100 people in Maine, including 32 at BIA, and brings an estimated $280 million into the state’s economy.

In Bangor, the two airlines control 60 percent of BIA’s passenger base.