As Delta Airlines works to acquire Northwest Airlines and move its hub from Minneapolis to Atlanta, some Minnesota state legislators are working behind the scenes to make sure Minnesota's interests are protected.
Chair of the House Commerce and Labor Committee, Rep. Joe Atkins, DFL - Inver Grove Heights, introduced a bill today that would require NWA to live up to its agreements with the state.
Along with the Metropolitan Airports Commission, the state provided $445 million in loans and concessions in exchange for NWA's agreement to keep its headquarters, a hub, and more than 1000 jobs in Minnesota.
Representative Atkins said the spin coming from both airlines has the appearance of trying to sugar coat the deal.
"This is a sale. I don't know where the term merger came from, but this is a $3 billion buyout of Northwest Airlines by Delta", said Rep. Atkins.
"We have an iron clad agreement with Northwest Airlines that both sides executed".
In the event the sale of Northwest is successful, the bill would require the airline to pay back all the money it owes the state. But Atkins did not say whether that payment would be required immediately.
The measuare would also require the airline to pay additional consequential damages that Rep. Atkins said would normally be required from the party who breaches a contract.
These damages could exceed $1 billion.
Later this week, Rep. Atkins and the House Commerce and Labor Committee will begin hearings to examine the NWA sale and its potential impact on the state.
By, Jenna Healy, Capitol Assistant
(Copyright 2008 by KARE11. All Rights Reserved.)
