Delta, Northwest merge into a “new” Delta

Justice approval trumps antitrust complains by unions

By Tom Stundza -- Purchasing, 10/30/2008 3:57:00 PM

Delta Air Lines today completed its merger with Northwest Airlines, creating the world's largest airline by traffic. The U.S. Justice Department yesterday announced that it wouldn't block the planned merger of Delta Air Lines and Northwest Airlines despite complains about potential antitrust from several affected unions. Antitrust clearance was the last hurdle for what essentially is Delta's acquisition of Northwest in an all-stock deal valued at about $3.1 billion.

The new airline, being called Delta, will serve 66 countries and more than 375 cities worldwide. "The airline industry faces a very difficult economic environment around the world and this merger gives Delta increased flexibility to adapt to the economic challenges ahead," Delta CEO Richard Anderson says in a statement. Delta and Northwest both said recently that they expect to spend $600 million on integration costs over three years, and are aiming for $2 billion in annual revenue synergies by 2012.

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