No surprise here, Northwest Airlines has been rumored to be in merger talks with Delta Air Lines, even as US Airways has increased their hostile takeover bid for the airline. Both Delta and Northwest filed for bankruptcy protection with in hours of each other, so these rumors are not unexpected.
The routes for the airlines have little overlap, with Northwest's midwest and Asian dominance along side Delta's southeastern and Atlantic domiance, would present little anti-trust issues. Not to mention the fact that they already code sharing flights. Something that US Airways would have to overcome. Alliances do not mix well.
Less overlap could mean less resistance from antitrust regulators, said former Northwest board member and Northwest Capt. Mike Ristow.
The intention to emerge as a standalone carrier was absent from a message to employees on Wednesday in response to the Wall Street Journal story.
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Northwest and Delta are rumored to be discussing a merger--this could be another huge merger in the airline industry, if it happens. But it may just be a protective strategy for Northwest against USAirways. [Read More]
Tracked on: January 11, 2007 1:45 PM | Permalink to Trackback