DAL/NWA Merger Takes Next Step

Back in April of this year Delta and Northwest Airlines announced their intent to merge their two airlines into a single entity still called Delta.

Today, the FAA approved a transitional plan to merge the air operations of the two airlines into a single network. Ultimately that will result in a single operating certificate. The process should take about 18 months.

Delta is holding its annual shareholders meeting in New York this week.  Delta Shareholders are expected to approve issuance of new shares to buy Northwest.  Northwest Shareholders will be asked to approve the acquisition.  DAL hopes this whole thing is done and dusted by the end of the year.

As a long time Delta passenger, native Atlantan, former DAL summer employee, and general fan of the airline, I'm not so sure this whole thing works to my benefit as a passenger.  However, as a freight carrier, Delta will clearly benefit from Northwests experience in cargo operations and extensive Asian routes. (at least the ones they haven't killed off yet.) Professionally I like that.

We will see. 

clipped from minnesota.publicradio.org FAA approves transition plan for Delta, NWA merger September 22, 2008 Atlanta — (AP) - The Federal Aviation Administration has approved a transition plan designed to combine the operations of Delta Air Lines and Eagan-based Northwest Airlines, and to achieve a single operating certificate after they merge. Airlines are required to have an operating certificate, which means they must prove to the FAA that they have the financing and management expertise to run an airline. Delta and Northwest each have their own operating certificate right now. The plan they submitted to the FAA outlines the methodology, processes, tools and timing they will employ to maintain the safety of their day-to-day operations during the transition period. The FAA's seal of approval for that plan means the two airlines can move forward with the transition process. Their goal is to achieve a single operating certificate over the next 15 to 18 months.

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