Bangkok--30 Oct--Aziam Burson-Marsteller
Delta Air Lines, Inc. (NYSE: DAL) today merged with Northwest Airlines, Inc., creating a premier global airline with a service to nearly all of the world’s major travel markets.
The new airline, called Delta Air Lines and headquartered in Atlanta, will begin its first day as a combined company serving more than 375 cites worldwide — more than any other airline; with approximately 75,000 employees worldwide. It has a best-in-class cost structure and strong liquidity balance that better positions the company to adapt to the weakening global economy.
Delta will maintain all its hubs at Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, and Tokyo-Narita — each of which will benefit from improved global connectivity.
“Delta is combining the best of two industry leaders to create a premier global airline that will be unmatched in the scope and level of service we offer our customers,” said Delta CEO Richard Anderson. “As we have been proving, this is a different type of merger for the industry thanks to the complementary nature of the two airlines and the caliber of the people who will make this the most successful merger in airline history.”
The Delta-Northwest merger will occur through a thoughtful integration process over the next 12-24 months. In the meantime, 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’ reservation systems and loyalty programs.
The closing of the Delta-Northwest merger brings together two of the industry’s most financially secure airlines to produce a best-in-class cost structure and an industry-leading balance sheet. The transaction is expected to generate $2 billion or more in annual revenue and cost synergies from more effective aircraft utilization, a more comprehensive and diversified route system, and cost synergies from reduced overhead and improved operational efficiency. The company expects to incur one-time cash costs not exceeding $600 million to integrate the two airlines. As approved by both companies’ stockholders earlier this year, Northwest stockholders will receive 1.25 Delta shares for each Northwest share they own.
Delta closed the merger after receiving notice from the United States Department of Justice (DOJ) that it would not challenge the merger after reviewing its competitive impact. Earlier this year, the merger also received clearance from the European Commission.
With its acquisition of Northwest Airlines, Delta Air Lines is now the world’s largest airline with a leading presence in every major domestic and international market. From its hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York, Salt Lake City and Tokyo-Narita, Delta and its Northwest subsidiary offer service to 375 destinations worldwide in 66 countries and serve more than 170 million passengers each year. Delta’s marketing alliances allow customers to earn and redeem either SkyMiles or WorldPerks on more than 16,000 daily flights offered by SkyTeam and other partners. Delta and its 75,000 worldwide employees are reshaping the aviation industry as the only U.S. airline to offer a full global network.
For more information, media inquiries can be directed to Sribenja Semmeesook or Satida Sritunyatorn at Aziam Burson-Marsteller at 02-252-9871