Airline Finance News - North America

AirGuide Business, April 28, 2008

Delta Air Lines, Northwest Airlines

Lawmakers discuss Delta-Northwest merger with CEOs on Capitol Hill members of Congress said they support the proposed merger of Delta Air Lines and Northwest Airlines but raised concerns about additional consolidation in the industry. Delta and Northwest executives on Thursday testified before lawmakers about the merger. They noted that they will not close hubs as a result of the merger. Apr 25, 2008

Delta Air Lines, Northwest Airlines

Some lawmakers said they support the proposed merger of Delta Air Lines and Northwest Airlines but raised concerns about additional consolidation in the industry. Delta and Northwest executives on Thursday testified before lawmakers about the merger. They noted that they will not close hubs as a results of the merger. Apr 25, 2008

Delta Air Lines, Northwest Airlines

The chief executives of Delta Air Lines and Northwest Airlines sought to reassure Congress on Thursday that their planned merger would not hurt service, cut jobs, or blunt competition. Richard Anderson of Delta and Douglas Steenland of Northwest also told a hearing of the antitrust task force in the House of Representatives that the combination would enable the two to better compete as the industry struggles with rising fuel prices. Northwest and Delta blamed a doubling of fuel prices in the past year for a combined loss of USD$465 million in the first quarter. The executives stressed the merged company, to be run by Anderson and headquartered in Atlanta, would expand service and preserve its hubs. They estimated fewer than 1,000 job losses as a result of the merger and none among front-line workers. Cuts would mainly address executive redundancies. Any job cuts, Anderson said, would be handled "in a gracious way." But combining the companies would have no material affect on ticket prices. Anderson said they would still be set by the market. Fares have steadily risen this year in response to higher fuel. Regulatory approval of the merger seemed to be a foregone conclusion among lawmakers, who offered little push-back. Their questions focused mainly on job protection, union elections, service plans and passenger rights. Apr 25, 2008

Delta Air Lines, Northwest Airlines

Air Line Pilots Assn. released a statement saying that the chairmen of the Delta Air Lines and Northwest Airlines pilot groups have "jointly discussed. . .the importance of commencing negotiations with Delta management in the very near future" on a single labor agreement "that will include immediate parity in rates of pay" upon the closing of the announced merger. The union said, however, that such a negotiation does not "constitute an endorsement" of the merger by the Northwest Master Executive Council. The chairmen agreed that seniority integration should occur "through expedited negotiation" and, if necessary, "expedited arbitration." DL pilots previously had rejected arbitration as a potential solution. Apr 24, 2008

Delta Air Lines, Northwest Airlines

Delta, Northwest executives will testify about merger. Delta Air Lines and Northwest Airlines executives will defend and explain their merger plans before House and Senate Judiciary committees. The airlines say the combined company will post strong profits and will not hurt competition within the industry. Convincing lawmakers of the merger's benefits is a key step toward winning regulatory approval. Apr 24, 2008