Justice Department Approves Merger of Northwest and Delta Air Lines

By Aaron Poehler

Published on October 29, 2008

U.S. Department of Justice antitrust regulators announced today that they will not halt the planned merger of Delta and Northwest, giving their approval to a deal which will create the world's largest airline by traffic.

In a written statement, DOJ regulators stated that following a six-month investigation during which they interviewed a wide range of airline industry figures, including representatives from each of the two companies as well as competing airlines along with travel agents, corporate customers, and others, they have determined that the proposed merger will not significantly reduce competition in the marketplace and is likely to create cost efficiencies beneficial to U.S. consumers.

Eagan, Minnesota-based Northwest Airlines Corp. and Atlanta, Georgia-based Delta Air Lines Inc. announced their intentions to merge operations in April of this year. The tentative deal was approved by shareholders in October. Under the terms of the merger agreement, Delta will acquire Northwest in exchange for stock shares valued at approximately $3.1 billion at current prices. The combined operation will retain the Delta name, be headquartered in Atlanta, and will boast a combined $35 billion in revenue, 75,000 employees, and an 800-plane fleet. Current Delta CEO Richard Anderson will head the new organization, presiding over a leadership team comprised of 4 senior officers from each company.

 

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