Delta Air Lines–Northwest Airlines merger: Difference between revisions
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{{Merge|Delta Air Lines|date=May 2009}} |
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{{Update|date=March 2009}} |
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{{Infobox Aviation |
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|name=Delta Air Lines-Northwest Airlines merger |
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|image=Image:DL-NW Tails.jpg |
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|caption= |
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}} |
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On April 15, 2008, '''[[Delta Air Lines]] and [[Northwest Airlines]] announced a merger agreement'''.<ref> [http://www.nwa.com/corpinfo/newsc/2008/pr041420081978.html Delta/Northwest Announce Merger Agreements] (Official Press Release: April 14, 2008)</ref> The merger of the two carriers will form the largest commercial airline in the world, with 786 aircraft. The merged airline will be called "Delta."<ref> [http://news.delta.com/article_display.cfm?article_id=11034 Delta/Northwest To Become Largest Airline In The World]</ref> |
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The deal passed through [[anti-trust]] overview from the [[United States Department of Justice|Department of Justice]]; as most analysis expected, the deal was not blocked, due to the minimal overlap between the two airlines' routes and very little threat to competition in the industry.<ref>[http://www.startribune.com/business/13905096.html NWA-Delta merger seen likely to pass U.S. scrutiny<!-- Bot generated title -->]</ref> The merger was also expected to be the subject of several hearings on [[Capitol Hill]]. [[Jim Oberstar|Representative Jim Oberstar]] of [[Minnesota]], who also serves as chair of the [[House Committee on Transportation and Infrastructure]], made clear his opposition to the merger, and he fought it in Washington.<ref>http://money.cnn.com/news/newsfeeds/articles/djf500/200804151754DOWJONESDJONLINE000765_FORTUNE5.htm</ref> There was also strong support for the merger at the Capitol from legislators from Georgia, including [[Lynn Westmoreland|Representative Lynn Westmoreland]], [[David Scott (politician)|Representative David Scott]], and [[Johnny Isakson|Senator Johnny Isakson]].<ref>http://www.11alive.com/news/politics_govt/article_politics.aspx?storyid=114468</ref> On [[August 7]], [[2008]], the merger won regulatory approval from the [[European Union]]. <ref>[http://www.chicagotribune.com/business/chi-thu_brief2_deltaaug07,0,6218139.story Delta's merger with Northwest gets OK in Europe - chicagotribune.com<!-- Bot generated title -->]</ref> |
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Northwest Airlines shareholders approved the deal on [[September 25]] [[2008]].<ref>[http://news.yahoo.com/s/ap/20080925/ap_on_bi_ge/northwest_delta_vote;_ylt=An0UPxJ5rxuigR084bM_I4ys0NUE Northwest shareholders OK Delta combo plan] Associated Press via Yahoo! News</ref> |
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It had been reported as early as January 2008 that Delta and Northwest were in merger discussions.<ref>http://www.ajc.com/business/content/business/delta/stories/2008/01/11/delta_0112.html</ref> News reports covering the event and the official press release reported that the new airline will use the Delta name and its world headquarters in Atlanta. The proposed merger partners lost a combined [[United States dollar|$]]10.5 billion in Q1 2008, an amount that exceeded their combined market capitalization.<ref>[http://www.thestar.com/Business/article/418853 TheStar.com | Business | On a wing and a prayer<!-- Bot generated title -->]</ref><ref>[http://afp.google.com/article/ALeqM5hr7PKzgCkBFNGCIhq3DlkKtaVvVg AFP: Delta, Northwest slash their value ahead of merger<!-- Bot generated title -->]</ref> |
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When the airlines combine, the "new Delta" will be based in [[Atlanta, Georgia|Atlanta]] with a network focused on its [[Hartsfield-Jackson Atlanta International Airport|Worldport at Atlanta]] and [[Detroit Metropolitan Wayne County Airport|WorldGateway at Detroit]], along with hubs at [[Minneapolis-St. Paul International Airport]], [[Cincinnati/Northern Kentucky International Airport]], [[John F. Kennedy International Airport]] in [[New York City]], [[Salt Lake City International Airport]], [[Memphis International Airport]], [[Narita International Airport]] near [[Tokyo]], [[Amsterdam Airport Schiphol]], and [[Paris-Charles de Gaulle Airport]].<ref>[http://www.twincities.com/portlet/article/html/imageDisplay.jsp?contentItemRelationshipId=1907209 Image Viewer<!-- Bot generated title -->]</ref> |
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On September 26, 2008 it was announced that both Delta and Northwest's [[shareholders]] had approved the merger. Approval by a federal antitrust review board's blessing was the last step needed to finalize the deal.<ref>[http://www.btnmag.com/businesstravelnews/headlines/article_display.jsp?vnu_content_id=1003855269 Shareholders Approve Delta-Northwest Merger] </ref> |
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On October 29, 2008, the [[United States Department of Justice]] approved Delta's plan to acquire Northwest <ref>[http://money.cnn.com/news/newsfeeds/articles/djf500/200810291548DOWJONESDJONLINE000918_FORTUNE5.htm UPDATE: US Justice Dept Allows Delta-Northwest Airlines Merger]</ref>. |
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After a six-month investigation, government lawyers concluded the merger would likely drive down costs for consumers without curbing competition. |
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The proposed merger "is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition," the Justice Department said in a statement issued by its Antitrust Division. |
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<ref> [http://money.cnn.com/2008/10/29/news/companies/delta_northwest.ap/index.htm?postversion=2008102915]</ref>. |
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It is anticipated that more airline mergers may follow suit.{{Fact|date=March 2009}} |
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== Statements == |
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=== Statement by Delta Air Lines === |
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A press release by Delta Airlines announced the merger. Below is a quote from the press release, explaining the merger: |
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{{cquote|Delta Air Lines Inc. (NYSE: DAL) and Northwest Airlines Corporation (NYSE: NWA) today announced an agreement in which the two carriers will combine in an all-stock transaction with a combined enterprise value of $17.7 billion, creating America’s premier global airline. The new airline, which will be called Delta, will provide employees with greater job security, an equity stake in the combined airline, and a more stable platform for future growth in the face of significant economic pressures from rising fuel costs and intense competition. Small communities throughout the United States will enjoy enhanced access to more destinations worldwide. Customers also will benefit from the combined carriers’ complementary route networks, which together will offer people greater choice, competitive fares and a superior travel experience to more cities than any other airline. In addition, combining Delta and Northwest will create a global U.S. flag carrier strongly positioned to compete with foreign airlines that are continuing to increase service to the United States.<ref>[http://news.delta.com/article_display.cfm?article_id=11034 Delta Newsroom<!-- Bot generated title -->]</ref>}} |
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=== Statement by Northwest Airlines === |
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Northwest Airlines also released a statement regarding the merger, the beginning of which can be found below |
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{{cquote|By combining Northwest and Delta, we are building a stronger, more resilient airline that will be a leader in providing customer service and value. The combined airline will offer unprecedented access to the world, enabling you to fly to more destinations and have more flight choices.<ref>http://www.nwa.com/features/mergerletter/index.html?intomni=tc.100percentservesV2.hplead</ref>}} |
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== Overview of Delta and Northwest == |
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Delta is the second largest airline right behind [[American Airlines]] in the United States and has a fleet of mostly Boeing aircraft. Cities served stretch from limited markets in Japan and South Korea, to many destinations in South America and Europe all the way east to the United Arab Emirates and India. Its route structure is particularly strong in the South, where Delta maintains the world's largest hub, at Atlanta's [[Hartsfield-Jackson International Airport]]. |
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Northwest has two hubs in the [[Midwest]] ([[Minneapolis-Saint Paul International Airport]] and [[Detroit Metropolitan Wayne County Airport]]), and one in the [[Southern United States]] ([[Memphis International Airport]]). It also offers high capacity flights to many small cities across the Great Plains as well as extensive long haul service to Asia and Europe. It has strong codeshare relationships in several West Coast focus cities. Recently, Northwest has added over one-hundred Airbus aircraft{{Fact|date=July 2008}} to their fleet after having predominantly Boeing and Douglas aircraft. |
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== References == |
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{{wikinews|US airlines Delta and Northwest agree to merge}} |
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{{reflist}} |
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[[Category:Delta Air Lines]] |
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[[Category:Northwest Airlines]] |
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