Airline Finance News - North America

AirGuide Business, April 21, 2008

Delta Air Lines, Northwest Airlines

However, if the Delta Air Lines and Northwest Airlines merger does go ahead, the new airline, which will fly under the Delta banner, would be based in Atlanta and become the world's largest carrier. A full integration between the airlines is not expected to be completed until 2012, management said. The new Delta would have US$35-billion in annual sales, 75,000 employees and a fleet of 800 aircraft. It would leverage Delta's strong domestic presence with Northwest's lucrative Asian business travel routes, extending to most of the world's major markets, management said. Apr 16, 2008

Delta Air Lines, Northwest Airlines

The anticipated Delta Air Lines and Northwest Airlines consolidation comes at a time when soaring fuel prices and a weakening U.S. economy have put pressure on U.S. airlines, pushing four carriers there in the past month to file for bankruptcy protection. The all-stock transaction, announced late Monday, would see Northwest shareholders receive 1.25 Delta shares for each of their shares, a premium of 17% over the Northwest closing price on Monday. The deal is still subject to regulatory approval, however, a process that management said could take until the end of 2008 to complete. The deal is also expected to receive stiff opposition from some of the airlines' unions, in particular the 5,000 Northwest pilots who vowed to fight it yesterday. Apr 16, 2008

Delta Air Lines, Northwest Airlines

The Delta Air Lines and Northwest Airlines merger is expected to put pressure on UAL Corp., the parent of United Airlines, and Continental Airlines to do the same. Continental said yesterday it would begin to explore "strategic alternatives" due to the changing competitive landscape after the merger was announced. Apr 16, 2008

Delta Air Lines, Northwest Airlines

The long-awaited merger between Delta Air Lines and Northwest Airlines is expected to have a positive impact on Canadian airlines and could create another potential customer for Bombardier' s yet-to-be-launched CSeries aircraft, analysts said yesterday. A much-needed reduction in excess capacity in the North American market is expected to result from the merger between Delta, the United States' third-largest carrier, and Northwest, its fifth. Management said yesterday the deal would create about US$1-billion in new revenue and cost savings for their combined operations, but would result in no hub closures or involuntary "furlough of frontline employees." Apr 16, 2008

Delta Air Lines, Northwest Airlines

Delta Air Lines and Northwest Airlines on Monday announced plans to merge. The transaction would create the world's largest airline measured by traffic and could prompt other carriers to combine. The agreement remains subject to regulatory approval, and some observers say the carriers might face objections from their unions. "We believe that consolidation in the airline industry is inevitable and we want to control our future," Delta CEO Richard Anderson said in a memo to Delta employees. "Combining our companies creates an airline with the size, scale and global presence to weather economic downturns and compete long-term in the global marketplace. Apr 15, 2008