Corporate & Securities Law

Delta-Northwest Moves Forward

By David Fischer

Yesterday, the U.S. Department of Justice released a statement to announce “the closing of its investigation of the proposed merger of Delta Air Lines Inc. and Northwest Airlines Corporation.”  According to the statement:

After a thorough, six-month investigation, during which the Division obtained extensive information from a wide range of market participants ? including the companies, other airlines, corporate customers and travel agents ? the Division has determined that the proposed merger between Delta and Northwest is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition.

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The two airlines currently compete with a number of other legacy and low cost airlines in the provision of scheduled air passenger service on the vast majority of nonstop and connecting routes where they compete with each other. In addition, the merger likely will result in efficiencies such as cost savings in airport operations, information technology, supply chain economics, and fleet optimization that will benefit consumers. Consumers are also likely to benefit from improved service made possible by combining under single ownership the complementary aspects of the airlines’ networks.

Full post as published by Antitrust Review on October 30, 2008 (boomark / email).