Delta-Northwest merger said to be closeAccording to published reports, the two airlines may finally be set to announce long-rumored deal. Merger would create world's largest airline.
By Chris Isidore, CNNMoney.com senior writer
Last Updated: April 13, 2008: 4:45 PM EDT
NEW YORK (CNNMoney.com) -- Delta Air Lines and Northwest Airlines are close to announcing a merger agreement, according to reports in the Wall Street Journal and Financial Times Sunday.
A deal would create the world's largest carrier and possibly prompt a series of other mergers that could reshape the U.S. airline industry.
The Financial Times reported that a deal could be announced as early as Monday while the Wall Street Journal said a merger announcement could take place Tuesday. Both papers cited unnamed sources familiar with the deal talks. (
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Delta Accord Paves Way for Northwest Deal, People Say
By Mary Jane Credeur and Mary Schlangenstein
April 10 (Bloomberg) -- Delta Air Lines Inc. and its pilots agreed on a tentative contract to clear the way for a merger with Northwest Airlines Corp. that would create the world's largest carrier, people familiar with the talks said.
The pilot accord includes higher pay and an equity stake in the combined airline, which would keep Delta's name and Atlanta headquarters, said the people, who didn't want to be identified because the plan is still private. The tie-up may be announced next week, the people said. (read more)
Delta and Northwest revive talks on merger
By Justin Baer and Francesco Guerrera in New York
Published: April 7 2008 03:00 | Last updated: April 7 2008 03:00
Delta Air Lines and Northwest Airlines, the US carriers seeking to add scale in the face of a brutal industry-wide downturn, have revived their talks to merge, people familiar with the talks said.
Record fuel costs, competition and ebbing demand has ended the US industry's modest recovery, forcing carriers to slash schedules, park aircraft and impose fees on passengers.
In the past week, Aloha Airgroup, ATA Airlines and SkyBus, the low-cost airlines, have shut down operations.
Delta and Northwest had inched towards a deal in February but talks stalled when pilot unions failed to find common ground on how to rank members by seniority, which determines pay, rank and aircraft flown.
Executives at Minnesota-based Northwest have since put pressure on their counterparts at Delta to proceed without the pilots' support. (read more)