Done Deal: DOJ Approves Delta, Northwest Merger!

[JoeMerchant]

I think that the announced the first wave of right sizing over at ASA today, didn't they?

There is going to be plenty of "right sizing" all around.....I wouldn't want to be near the bottom of any list right now....

 

[JoeMerchant]

Lower oil prices take a lot of the pressure off. At the same time, no one is too keen on increasing capacity in this market.

ALK is a de-facto Delta Connection carrier feeding KSEA's expansion. If they tied the knot with AA (which doesn't make a lot of sense) then Delta would be the one getting screwed.

UAUA and AAI both have good pilot groups and I wish them the best.

Interesting that certain ALPA members are allowed to codeshare in "big" airplanes.....while others aren't allowed to....

 

[Eagle757shark]

Looks like still one minor hurdle to clear before it's considered closed. Passenger lawsuit in SFO:

The WSJ article said this was settled out of court.

Ths San Fransico lawsuit was settled out of court. All legal hurdles have been cleared along with all regulatory hurdles. Looks like the Northwest name will be going away in 2009.

 

[Eagle757shark]

Farewell, Northwest: The Delta merger is official

By LIZ FEDOR, Star Tribune
October 29, 2008
Just hours after getting approval from the U.S. Department of Justice, Delta Air Lines today completed its acquisition of Eagan-based Northwest Airlines.
The merged carrier, which keeps the Delta name and is based in Atlanta, becomes the world's largest airline.
For now, however, fliers will see little change. Northwest will continue to operate as a subsidiary of Delta, and both carriers' websites continue to operate separately, for now. The airlines' operations will be integrated during the next 12 to 24 months, the airlines said this afternoon in a prepared statement.
"The airline industry faces a very difficult economic environment around the world and this merger gives Delta increased flexibility to adapt to the economic challenges ahead," Delta CEO Richard Anderson said in the statement. "With much of the work to bring our airlines together well under way, the new Delta will be at the front of the pack in achieving the benefits of consolidation and is well positioned to navigate the tough waters ahead in a difficult economy."
Earlier today, federal regulators concluded that the merger is "likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition."
Northwest CEO Doug Steenland called it "an important milestone." The merger "will allow the combined carrier to better weather the current economic challenges and provide greater stability and job security for our employees," Steenland said.
Delta President Ed Bastian succeeds Steenland as Northwest's chief executive.
Before workforces are integrated, there will be union representational elections for flight attendants and ground workers.
The International Association of Machinists and Aerospace Workers, which represents 12,500 Northwest ground workers, has been an ardent opponent of the merger.
In a statement today, the IAM's Robert Roach, general vice president, said federal approval of the merger came as "no surprise" after "eight years of disastrous economic decisions by the Bush administration."
Anderson has argued that joining the two networks of Delta and Northwest will grant consumers more choices and create a more durable carrier that can withstand the shocks of high oil prices and difficult economic times.