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(AP) - Whenever Delta Air Lines Inc. starts making noise, it has become standard practice in Georgia for lawmakers to
quickly call a meeting and then shower the Atlanta-based company
with praise.

      It happened during the airline's descent into and then emergence
from bankruptcy, a subsequent hostile takeover bid from US Airways
and now with speculation that the nation's No. 3 carrier may be
close to a deal to combine with a rival.

      What's different now, though, is that Georgia could gain from
the possible combination. There's hope that Atlanta could become
the headquarters for a potential merger with either of the reported
suitors, United Airlines or Northwest Airlines.


      "We guardedly welcome these talks of a merger if they result in
the relocation of a headquarters here," said state Sen. Judson
Hill, a Marietta Republican who chairs the subcommittee that called
Tuesday's meeting.


      Rising jet fuel prices and other factors are driving fresh
rounds of consolidation talks, and some analysts and Delta
investors are among the loudest calling for a merger.

      Northwest and United are seen as the best fit for Delta, as both
have strong Pacific routes that would complement Delta's flights
across the Atlantic. 

Such a combination would also create the
nation's largest airline, guaranteeing increased scrutiny.

      Delta has said it is analyzing its options, but would not
comment on possible merger talks.

Meantime, Minnesota officials are putting some pressure on Northwest officials to keep the airline's corporate headquarters in the Twin Cities.  

Gov. Tim Pawlenty said last week he expects Northwest to honor its commitments and keep its headquarters and hub in Minnesota. 

Northwest would give up $215 million in financial incentives at the airport between now and 2020 if it moves its headquarters out of Minnesota. 

Pawlenty also indicated that additional state assistance might be available to keep the airline's headquarters and hub in Minnesota. 

In Atlanta Tuesday, lawmakers and state officials urged Delta to stay in Georgia and praised its impact on the state.

Thanks to Delta, they said, the city boasts the world's busiest airport, Hartsfield Jackson Atlanta International Airport. And they
reminded Delta that it has an estimated $13 billion economic impact on the state and has long been used to help raise Georgia's
profile.

      "Delta is an important arrow in our quiver as we go out and
market our state," said Ken Stewart, the state's economic
development commissioner. "They're a great partner when it comes
to selling this state."

      Ben DeCosta, the airport's general manager, said he's confident
the potential combined company would maintain a hub in Atlanta, and
added that the city could only stand to gain from a possible
merger.

      "In the Atlanta situation, all the indications say we'd be the
winners" of a possible merger, he said.


      Hill, wearing a button that said "Keep Delta my Delta," took
the chance to remind airline officials the Legislature recently
passed a measure that limited what it paid in state fuel taxes.
It's likely to be far from the last tax break aimed at the company.

      "How can we be helpful?" he asked at the meeting's end. "What
can we do to be helpful as y'all continue this process, without
interfering?"
     

Gallery

Business and Economic News

There's hope in Georgia, home state of Delta Air Lines, that Atlanta could become the headquarters for a potential merger with either of the reported suitors, United Airlines or Northwest Airlines.

A Delta-Northwest merger: The view from Atlanta

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