Mr. Icahn and the machinists are old hands at forging an alliance in an airline takeover.

The deal is the first airline takeover in the country in more than a decade and the biggest.

A Senate committee bill would empower the Secretary of Transportation to block airline takeovers for reasons of safety.

The rise in the Dow transportation average was attributed to continuing rumors of an airline takeover.

He declined to comment on current airline takeovers.

"There is definitely a high risk that Washington will become more involved in airline takeovers than they have in the past," he said.

One reason may be fear that the Government's attitude toward airline takeovers and asset sales may have shifted under the Bush Administration.

But yesterday some investors were concerned that the Transportation Department could begin to intervene in airline takeovers.

The Senate is considering a similar bill allowing the department to disapprove proposed airline takeovers.

Then he became preoccupied with airline takeovers.