Delta and Northwest in Merger Talks

February 07, 2008 12:33 PM
by findingDulcinea Staff
U.S.-based airlines Delta and Northwest are negotiating a merger that would create the world’s largest airline.

30-Second Summary

The deal could be struck by as early as the middle of this month, reports the Financial Times. However, the paper also notes that negotiations could fall through at any time.

Both airlines filed for Chapter 11 bankruptcy protection in recent years. Atlanta-based Delta completed its restructuring process on April 30, 2007, and Minneapolis-based Northwest officially emerged from the red on May 31 the same year.

In addition, the two companies already have close ties. Both belong to the SkyTeam code-sharing alliance, and former Northwest CEO Richard Anderson took over as head of Delta last summer.

CBS News reported at the time that “the move could revive speculation in a possible merger between Atlanta-based Delta and Eagan, Minn.-based Northwest.”

The Minneapolis-St. Paul Star-Tribune is upbeat about the deal, saying that Northwest meets Delta’s ideal of “a partner that can strengthen its financial position, including a favorable cost structure.”

Headline Link: ‘Delta and Northwest close to merger’

Background: Airline bankruptcy and reorganization

Key Players: Richard Anderson

Opinion & Analysis: ‘Northwest, Delta Closing in on Merger Deal’

Reference: Delta’s and Northwest’s balance sheets


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