Delta Air Lines-Northwest Airlines merger
Encyclopedia
On April 15, 2008, Delta Air Lines
and Northwest Airlines
announced a merger agreement. The merger of the two carriers formed, at the time, the largest commercial airline in the world, with 786 aircraft. The merged airline is called "Delta."
10.5 billion in Q1 2008, an amount that exceeded their combined market capitalization.
When the airlines combined, the "new Delta" would be based in Atlanta
with a network focused on its Worldport at Atlanta
and 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.
The deal passed through anti-trust overview from the 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. The merger was also expected to be the subject of several hearings on Capitol Hill. 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. There was also strong support for the merger at the Capitol from legislators from Georgia, including Representative Lynn Westmoreland
, Representative David Scott
, and Senator Johnny Isakson
. On August 7, 2008, the merger won regulatory approval from the European Union
.
After a six-month investigation, government economists concluded the merger would likely drive down costs for consumers without curbing competition. On October 29, 2008, the United States Department of Justice
approved Delta's plan to acquire Northwest.
The Delta Air Lines
and Northwest Airlines
airline operating certificates were merged on December 31, 2009. Reservations systems were merged on January 31, 2010, which officially retired the Northwest brand.
(including McDonnell Douglas
aircraft) fleet. Delta inherited numerous Airbus
aircraft in its merger with Northwest Airlines
. Delta was one of the last major airlines to operate the original Boeing 737–200 models, until the last of these aircraft retired in 2006. Delta has the largest fleets of Boeing 757
and Boeing 767
and the largest US operator of the Airbus A330
aircraft of any airline. It is the second largest operator of the McDonnell Douglas MD-80 (behind American Airlines
) and the largest operator of the Boeing 767–300 and 767-400ER. Delta's Boeing Customer Code is "32", i.e., 777-232LR, 767-432ER, etc.
Delta Air Lines
Delta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
and Northwest Airlines
Northwest Airlines
Northwest Airlines, Inc. was a major United States airline founded in 1926 and absorbed into Delta Air Lines by a merger approved on October 29, 2008, making Delta the largest airline in the world...
announced a merger agreement. The merger of the two carriers formed, at the time, the largest commercial airline in the world, with 786 aircraft. The merged airline is called "Delta."
Leading up to the announcement
It had been reported as early as January 2008 that Delta and Northwest were in merger discussions. News reports covering the event and the official press release reported that the new airline would use the Delta name and its world headquarters in Atlanta. The proposed merger partners lost a combined $United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
10.5 billion in Q1 2008, an amount that exceeded their combined market capitalization.
When the airlines combined, the "new Delta" would be based in Atlanta
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
with a network focused on its Worldport at Atlanta
Hartsfield-Jackson Atlanta International Airport
Hartsfield–Jackson Atlanta International Airport , known locally as Atlanta Airport, Hartsfield Airport, and Hartsfield–Jackson, is located seven miles south of the central business district of Atlanta, Georgia, United States...
and WorldGateway at Detroit
Detroit Metropolitan Wayne County Airport
Detroit Metropolitan Wayne County Airport , usually called Detroit Metro Airport, Metro Airport locally, or simply DTW, is a major international airport covering in Romulus, Michigan, a suburb of Detroit. It is Michigan's busiest airport....
, along with hubs at Minneapolis-St. Paul International Airport, Cincinnati/Northern Kentucky International Airport
Cincinnati/Northern Kentucky International Airport
Cincinnati/Northern Kentucky International Airport , sometimes called the Greater Cincinnati Airport is located in Hebron, unincorporated Boone County, Kentucky, United States and serves the Greater Cincinnati metropolitan area. Despite being located in Boone County, the airport operations are...
, John F. Kennedy International Airport
John F. Kennedy International Airport
John F. Kennedy International Airport is an international airport located in the borough of Queens in New York City, about southeast of Lower Manhattan. It is the busiest international air passenger gateway to the United States, handling more international traffic than any other airport in North...
in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, Salt Lake City International Airport
Salt Lake City International Airport
Salt Lake City International Airport is a major public airport in Utah. A joint civil-military facility, it is located in western Salt Lake City, approximately four miles from the central business district...
, Memphis International Airport
Memphis International Airport
Memphis International Airport is a joint civil-military public airport located three miles south of the central business district of Memphis, a city in Shelby County, Tennessee, United States....
, Narita International Airport
Narita International Airport
is an international airport serving the Greater Tokyo Area of Japan. It is located east of Tokyo Station and east-southeast of Narita Station in the city of Narita, and the adjacent town of Shibayama....
near Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Amsterdam Airport Schiphol, and Paris-Charles de Gaulle Airport.
Announcement
On April 14, 2008, both Delta and Northwest Airlines announced that they would merge to create the world's largest airline under the Delta name. The Atlanta-based combined airline will have $17.7 billion enterprise value. The company also stated on April 14, 2008 that it agreed with its pilot union to extend the existing collective bargaining agreement through the end of 2012. The agreement, subject to a vote by the pilots, provided Delta pilots a 3.5% equity stake in the created new airline.After the Announcement
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. 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.The deal passed through anti-trust overview from the Department of Justice
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
; 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. The merger was also expected to be the subject of several hearings on Capitol Hill. Representative Jim Oberstar
Jim Oberstar
James Louis "Jim" Oberstar is a former U.S. Representative who served in the U.S. Congress from 1975 until 2011 as a member of the Minnesota Democratic–Farmer–Labor Party. He represented northeastern , which included the cities of Duluth, Brainerd, Grand Rapids, International Falls, and Hibbing...
of Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
, 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. There was also strong support for the merger at the Capitol from legislators from Georgia, including Representative Lynn Westmoreland
Lynn Westmoreland
Lynn A. Westmoreland is the U.S. Representative for , serving since 2007. He is a member of the Republican Party. The district stretches from the far southern Atlanta suburbs to the suburbs of Columbus...
, Representative David Scott
David Scott (politician)
David A. Scott is the U.S. Representative for , serving since 2003. He is a member of the Democratic Party.-Early life and education:Scott was born in Aynor, South Carolina and attended high school in Daytona Beach, Florida...
, and Senator Johnny Isakson
Johnny Isakson
John Hardy "Johnny" Isakson is the junior United States Senator from Georgia and a member of the Republican Party. Previously, he represented in the House....
. On August 7, 2008, the merger won regulatory approval from the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
.
After a six-month investigation, government economists concluded the merger would likely drive down costs for consumers without curbing competition. On October 29, 2008, the United States Department of Justice
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
approved Delta's plan to acquire Northwest.
The Delta Air Lines
Delta Air Lines
Delta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
and Northwest Airlines
Northwest Airlines
Northwest Airlines, Inc. was a major United States airline founded in 1926 and absorbed into Delta Air Lines by a merger approved on October 29, 2008, making Delta the largest airline in the world...
airline operating certificates were merged on December 31, 2009. Reservations systems were merged on January 31, 2010, which officially retired the Northwest brand.
Transition from Northwest to Delta
- In airports where Northwest and Delta operate in separate terminals, one airline moves to another's terminal. For example, in Los Angeles International Airport, NWA, which had a smaller operation, moved into Delta's Terminals 5 and 6 from its previous home in Terminal 2 on June 30, 2009.
- Northwest WorldPerks was merged into Delta SkyMiles on October 1, 2009
- As of 31 December 2009, 216 of NWA's 303 aircraft have been painted in Delta livery.Northwest's three US Hubs have been fully rebranded and gates have been consolidated along with other US airports. Some routes are being transferred to Delta from Northwest and to Northwest from Delta depending on the route.
The "New" Delta Air Lines Fleet
Prior to merging with Northwest Airlines, Delta Air Lines had an all-BoeingBoeing Commercial Airplanes
Boeing Commercial Airplanes designs, assembles, markets and sells large commercial jet aircraft and provides product-related maintenance and training to customers worldwide...
(including McDonnell Douglas
McDonnell Douglas
McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It formed from a merger of McDonnell Aircraft and Douglas Aircraft in 1967. McDonnell Douglas was based at Lambert-St. Louis International Airport...
aircraft) fleet. Delta inherited numerous Airbus
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
aircraft in its merger with Northwest Airlines
Northwest Airlines
Northwest Airlines, Inc. was a major United States airline founded in 1926 and absorbed into Delta Air Lines by a merger approved on October 29, 2008, making Delta the largest airline in the world...
. Delta was one of the last major airlines to operate the original Boeing 737–200 models, until the last of these aircraft retired in 2006. Delta has the largest fleets of Boeing 757
Boeing 757
The Boeing 757 is a mid-size, narrow-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. Passenger versions of the twinjet have a capacity of 186 to 289 persons and a maximum range of , depending on variant and cabin configuration...
and Boeing 767
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...
and the largest US operator of the Airbus A330
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....
aircraft of any airline. It is the second largest operator of the McDonnell Douglas MD-80 (behind American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
) and the largest operator of the Boeing 767–300 and 767-400ER. Delta's Boeing Customer Code is "32", i.e., 777-232LR, 767-432ER, etc.