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Delta Airlines: Northwest Airlines
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CBS News confirms a report that Northwest Airlines and Delta are involved in ongoing talks about a possible joint operating plan once the two carriers emerge from bankruptcy. While neither airline would comment, aviation analysts say Delta would probably prefer to emerge from bankruptcy as a stand alone carrier, but a deal with Northwest would be preferable to a hostile takover by US Airways --which raised its bid to takeover the airline.
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Delta Airlines confirmed former Northwest Airlines chief executive Richard Anderson will take the top spot on effective Sept. 1. Anderson, an executive vice president at UnitedHealth Group... is a Delta board director.
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SkyTeam, a global alliance, was created in 2000 and Delta partnered with AeroMéxico, Air France, and Korean Air. Three years later, Delta implemented the largest domestic codeshare alliance with Continental Airlines and Northwest Airlines. Today SkyTeam now the second largest airline alliance in the world and continues to add members to its ranks.
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When Anderson was named in August as Delta CEO to replace Grinstein, there was immediate speculation in the investment community that Delta and Northwest might eventually merge. Anderson is a former CEO of Northwest Airlines Corp.
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FINANCE • High fuel prices and a soft economy have sent Delta and Northwest Airlines running into each other's arms. The two could announce a definitive plan to merge as early as next week. [NYT] • Senate Republicans have axed a proposed economic-stimulus bill.
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