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Delta, Northwest Complete Their Merger

$2.6 billion consolidation creates world's largest airline

By Mark Huffman
ConsumerAffairs.com

October 30, 2008

The new airline, which will retain the name Delta and be headquartered in Atlanta, will serve customers in 66 countries and more than 375 worldwide cities. It will have 75,000 worldwide employees.

The deal is expected to yield $2 billion in cost savings and boost revenue, primarily by adding new routes and reducing competition on existing routes.

"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," said Delta CEO Richard Anderson. "With much of the work to bring our airlines together well under way, the new Delta will be at the front of the pack in achieving the benefits of consolidation and is well positioned to navigate the tough waters ahead in a difficult economy."

With the completion of the merger, Northwest Airlines is now a wholly owned subsidiary of Delta. Customers should continue to check-in and do business directly with the airline operating their flight just as they did before the merger. Delta will continue operation of the airlines' separate Web sites, www.delta.com and www.nwa.com, as well as the two airlines' reservations systems and loyalty programs.

The companies will be integrated over the next 12-24 months, with the addition of Delta's code to nearly all of the Northwest system by the end of 2008. The airline said that step will create thousands of additional connecting opportunities.

It will also upgrade reciprocity for elite members of both airlines' loyalty programs, with airport lounge reciprocity continuing as usual.

The airline will launch a fully consolidated worldwide flight schedule in advance of summer 2009.

Delta said it has already invested significant resources to ensure a seamless transition for customers, including receiving clearance from the Federal Aviation Administration of the airline's plan to achieve a Single Operating Certificate over the next 14-16 months. It will also add extra staffing and technology at check-in counters and kiosks to provide added customer assistance beginning immediately.

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