Roughly six months after unveiling their plans to merge, Delta Air
Lines and Northwest Airlines have secured clearance for the deal
from the US Department of Justice.
Executives from both airlines have repeatedly stated their
expectations of gaining DOJ approval by yearend.
The department says it "has determined that the proposed merger
between Delta and Northwest is likely to produce substantial and
credible efficiencies that will benefit US consumers and is not
likely to substantially lessen competition".
DOJ further explains the merger will produce cost savings in
airport operations, information technology and fleet
optimization.
Previously Delta and Northwest have estimated annual synergies of
$2 billion, which should ramp up in 2012, and integration costs of
$600 million over three years.
The two carriers still have to close the transaction, which also
should occur before the end of the year. At that time Northwest
shareholders will turn over their stock in exchange for Delta
shares. The combined entity will operate under the Delta brand.
Recently Delta CEO Richard Anderson told employees the merger's
importance is even more relevant given the current global economic
uncertainty.
Anderson highlighted the new carrier's ability to expand its
international network, allowing it to take market share away from
other carriers.
http://www.flightglobal.com/articles/2008/10/29/318120/delta-and-northwest-secure-justice-department-approval-for.html
Sob ! I hope we won't lose that NWA Livery !