Senate aviation chair not against Delta merger

By John Crawley

WASHINGTON (Reuters) - The chairman of the committee overseeing aviation affairs in the U.S. Senate said on Wednesday he would not oppose the proposed merger of Delta Air Lines Inc (DAL.N: Quote, Profile, Research) and Northwest Airlines Corp (NWA.N: Quote, Profile, Research).

Democrat John Rockefeller of West Virginia told the chief executives of both airlines at the conclusion of a hearing on the deal that he was not inclined to challenge the merger agreement.

"I'm not against a merger. I want very strong scrutiny by the Department of Justice and others with great detail, but I'm not convinced here that anyone is operating out of ill faith," Rockefeller said.

But he said the "stakes were enormous" and the aviation system was not working well for everyone. Rockefeller said he does not want to "go back to that day," but he would not "discount entirely" the prospect of reregulating airlines, especially if service to small and medium-sized communities deteriorates severely.

Congress deregulated the airlines in the late 1970s, but still taxes the industry, imposes fees for airport improvement and security, and oversees safety.

Although Congress cannot block a merger, lawmakers can apply pressure to regulators and use the bully pulpit and other political levers to disrupt the timing of a deal or influence public sentiment. Outright congressional support, while not crucial, can help the two clear regulatory hurdles.

A leading voice in Congress, Rockefeller's support -- or his non opposition -- as chairman of the Commerce Committee's aviation panel sends an important signal to other lawmakers.

Other key lawmakers in the Senate and the House of Representatives have put up little or no resistance to the proposal.