Delta and Northwest Airlines Merge

The Northwest Airlines name will go following completion of its merger with Delta Air Lines. The combined carrier will carry the Delta name and be based at its headquarters in Atlanta.

The merged airline will serve more than 375 cites worldwide - more than any other airline - with approximately 75,000 employees handling more than 170 million passengers a year.

The merger will occur through an integration process over the next 12-24 months after being cleared by the US Department of Justice. Passengers have been advised to continue to check-in and do business directly with the airline operating their flight just as they did before the merger.

As a combined company, Delta will maintain all its hubs at Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, and Tokyo-Narita - each of which will benefit from improved global connectivity.

The deal is expected to generate $2 billion or more in annual revenue and cost savings from more effective aircraft utilisation, a more comprehensive and diversified route system, and cost cuts from reduced overhead and improved operational efficiency.

The company expects to incur one-time cash costs not exceeding $600 million to integrate the two airlines.

"It has a best-in-class cost structure and strong liquidity balance that better positions the company to adapt to the weakening global economy," a statement said.

CEO Richard Anderson said: "Delta is combining the best of two industry leaders to create a premier global airline that will be unmatched in the scope and level of service we offer our customers.

"As we have been proving, this is a different type of merger for the industry thanks to the complementary nature of the two airlines and the calibre of the people who will make this the most successful merger in airline history.

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Delta and Northwest Merger Talks

Northwest Airlines has entered into formal merger discussions with Delta Air Lines and will look for another partner if Delta tries to merge with United Airlines instead, the chairman of the House Transportation and Infrastructure Committee said in a newspaper interview.

U.S. Rep. Jim Oberstar confirmed the talks in an interview with the Star Tribune, saying he met with two Northwest executives Tuesday in his Washington office.

The Minnesota Democrat said Ben Hirst, Northwest's senior vice president of corporate affairs and administration, and Andrea Fischer Newman, Northwest's senior vice president of government affairs confirmed that Delta is considering both Northwest and United as options for a merger.

During the meeting, Oberstar said the executives talked about how a merger would yield cost savings and that the two carriers' route networks are complementary, with Northwest strong in the Pacific and with Delta with a major presence in the Atlantic.

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