Delta Air Lines has begun merger talks with Northwest Airlines, the office of US House of Representatives Transportation Committee chairman James Oberstar said.
Oberstar spokesman Jim Berard said discussions were underway and that Northwest does see a benefit in a merger with Delta.
Northwest also told Oberstar that Delta is looking at United Airlines.
Delta spokeswoman Betsy Talton would not confirm that Delta was talking with Northwest or United. Officials at United and Northwest would not comment on the Oberstar comments.
Oberstar generally does not favor consolidation involving major carriers because of the potential impact on competition, prices and service, especially to small communities. The current situation concerns him even more because he believes a Delta merger will spur other deals.
Berard said a lot has to be done to convince him that this is a good thing on a wide scale, not just to the shareholders.
Berard said Oberstar would likely hold hearings on any proposed merger.
Northwest is the largest employer in Minnesota.
Congress cannot stop a merger outright, but it can pressure antitrust regulators and companies. Delta successfully leveraged its muscle on Capitol Hill to beat back a hostile bid by US Airways Group last year.
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