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KLM executive says Northwest, Delta could merge
Monday June 19, 1:05 pm ET
Northwest Airlines Corp. and Delta Air Lines have a "real possibility" of merging, said the chief executive of airline carrier KLM, which is part of Air France.
According to news reports, KLM chief executive Leo van Wijk told reporters in New York that a merger would benefit Air France-KLM as it would be easier to deal with one entity.
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Such a merger has been rumored since Eagan, Minn.-based Northwest (Pink Sheets: NWACQ - News) entered Chapter 11 bankruptcy protection last September, on the same day as Delta (Pink Sheets: DALRQ - News).
Other industry leaders and executives have predicted consolidation in the struggling airline industry as rising fuel costs and low-cost carriers assault companies' bottom lines.
Northwest is the second-largest passenger airline operating out of General Mitchell international Airport in Milwaukee. Delta, based in Atlanta, is the third-largest at Mitchell, combining traffic from Delta and Delta Connection carriers Chautauqua Airlines, operated by Republic Airways Holdings Inc. (NASDAQ: RJET - News), and SkyWest Airlines (NASDAQ: SKYW - News).
Air France took over the Dutch company KLM in May 2004, creating Air France-KLM. Air France-KLM is the largest airline company in the world in terms of operating revenues. It is part of the SkyTeam Alliance with such carriers as Delta Air Lines, Alitalia, Northwest Airlines, and Continental Airlines (NYSE: CAL - News).
Published June 19, 2006 by The Business Journal
KLM executive says Northwest, Delta could merge
Monday June 19, 1:05 pm ET
Northwest Airlines Corp. and Delta Air Lines have a "real possibility" of merging, said the chief executive of airline carrier KLM, which is part of Air France.
According to news reports, KLM chief executive Leo van Wijk told reporters in New York that a merger would benefit Air France-KLM as it would be easier to deal with one entity.
ADVERTISEMENT
Such a merger has been rumored since Eagan, Minn.-based Northwest (Pink Sheets: NWACQ - News) entered Chapter 11 bankruptcy protection last September, on the same day as Delta (Pink Sheets: DALRQ - News).
Other industry leaders and executives have predicted consolidation in the struggling airline industry as rising fuel costs and low-cost carriers assault companies' bottom lines.
Northwest is the second-largest passenger airline operating out of General Mitchell international Airport in Milwaukee. Delta, based in Atlanta, is the third-largest at Mitchell, combining traffic from Delta and Delta Connection carriers Chautauqua Airlines, operated by Republic Airways Holdings Inc. (NASDAQ: RJET - News), and SkyWest Airlines (NASDAQ: SKYW - News).
Air France took over the Dutch company KLM in May 2004, creating Air France-KLM. Air France-KLM is the largest airline company in the world in terms of operating revenues. It is part of the SkyTeam Alliance with such carriers as Delta Air Lines, Alitalia, Northwest Airlines, and Continental Airlines (NYSE: CAL - News).
Published June 19, 2006 by The Business Journal
