Copyright 2000 The Atlanta Constitution
The Atlanta
Journal and Constitution
November 14, 2000, Tuesday, Home Edition
SECTION: Business; Pg. 3C
LENGTH: 332 words
HEADLINE:
Delta chief foresees changes in United, US Airways merger;
Chance to bid for
routes? Mullin says opening in Washington market possible.
BYLINE: Nancy Fonti, Staff
SOURCE: CONSTITUTION
BODY:
The proposed merger of United Airlines and US Airways will
survive, but not in its current form, the chief executive of Delta Air Lines
predicted Monday.
"Most mergers get approved with very substantial
modification," Leo Mullin said at a New York speech for investors. "It is my
personal view that this is what will happen." The Department of Justice is
reviewing the consolidation of United and US Airways, announced in the spring.
If the deal survives antitrust review, it could also spur more megadeals among
the remaining top airlines, including Atlanta-based Delta, American Airlines,
Continental Airlines and Northwest Airlines.
The merger would make
United, already the world's largest airline, even bigger. To ease government
scrutiny, United has proposed selling off the Washington operations of US
Airways, based in Arlington, Va., to Black Entertainment Television founder and
US Air director Robert Johnson. He would run a new carrier called DC Air.
In his speech, Mullin indicated that he believes the structure of the
agreement will change, which could mean Delta would have a chance to bid for
some of routes owned by United or US Airways. Most intriguing are routes out of
Washington to be flown by DC Air, which other airlines say would only be a proxy
for United.
Those routes have already caught the eye of Continental,
which in October offered $ 215 million to buy the operations at the
slot-restricted Reagan National Airport.
"Quite clearly Washington is
still up in the air," Mullin said. "If we had the chance to look at D.C., we
would be very interested in doing so."
AirTran Airways, Atlanta's
second-biggest carrier behind Delta, also has expressed interest in the
Washington operations.
Mullin pointed out that combined, United and US
Airways would have a monopoly on many routes, and they would be required to
divest some of them. " If there is a bargain or an auction, you can be sure
Delta will be there, and talking about it," Mullin said.
LOAD-DATE: November 14, 2000 
