Though it is not clear what legal or official effect such hearings would have, Randy Horiuchi, Jenny Wilson and Joe Hatch, all Democrats, say that because the bid puts Delta's Salt Lake hub at risk, it is worth the effort.
At stake, they say, are 6,200 Utah jobs and $2.4 billion in economic benefit that Delta delivers to the state.
"By any objective measure, this would be a bad deal for consumers and cause a devastating impact to the Utah economy," Horiuchi said Wednesday in a joint statement with Wilson and Hatch.
"This raid by US Airways looks a lot more like a monopoly move than a corporate strategy to enhance the airline industry or bring new and expanded benefits to consumers," Horiuchi said.
Hatch said the hearings in January will build a public record of whether county residents support or oppose the merger. The council may have limited subpoena power to compel the attendance of US Airways, but it's unlikely it would be used, he said.
"The real thrust of why this [merger] is a bad idea is its antitrust implications," Hatch said. "Where the hearing could be effective is if the people in Washington, D.C., see that there is a huge outcry against the proposed takeover."
Telephone calls to Horiuchi and Wilson (who is running for Salt Lake City mayor) weren't returned Wednesday. It takes only two members of the council to call for a discussion about an issue, but the Democrats say they will seek a legal opinion on whether they would need a quorum of five members to conduct the hearings. Hatch said he expects bipartisan support for the hearings.
On Tuesday, Delta's board of directors formally rejected the US Airways offer, saying its premise is flawed and does not provide as much value to the carrier's creditors as the reorganization plan Delta has submitted to a bankruptcy court. Delta executives also contend that the Department of Justice is unlikely to approve the merger, even if creditors like it.
Beyond demonstrating their opposition, it's unclear what influence local public officials can exert by conducting hearings and investigations. They have no power to authorize or reject the merger.
Nevertheless, Delta welcomes the support in its face-off with US Airways.
"We are pleased to have the continued support of the Salt Lake and Utah community as we continue to work to emerge from bankruptcy as a stand-alone airline," said Delta spokesman Anthony Black.
The unsecured creditors committee in Delta Air Lines' bankruptcy case, which holds a key role in deciding the carrier's fate, said Wednesday it supports Delta's decision to file its stand-alone reorganization plan, but that it also will weigh alternatives.
The committee did not elaborate on its views, and a lawyer for the committee, Daniel Golden, did not return repeated calls and e-mails seeking comment.
US Airways officials said the Tempe, Ariz.-based airline continues to pledge that the Salt Lake hub would survive the merger and no pilots or other front-line employees would lose their jobs.
"We haven't been officially notified about these public hearings, but we remain a determined and disciplined bidder, and we are confident that our proposal creates the best value for all of our stakeholders," spokesman Morgan Durrant said.
Wilson said the merger would reduce tax revenue in Utah, harming schools and other public services.
"We need to make sure that our voice is heard and that all the facts are presented," he said.
Hatch said the merger attempt is a nonpartisan issue and that state Republicans and Democrats should stand behind Delta. "Corporate raiders should not have the final say when it comes to airline safety or access to reasonable fares, and we have every reason to be concerned that if this hostile takeover goes through, the Salt lake City airline hub will be the big loser," Hatch said.
pbeebe@sltrib.com
