Delta Air Lines Inc. over the weekend
outlined one of the benefits of its $2.6 billion acquisition of Northwest Airlines Corp., saying it would trim millions in costs by 2010 by surrendering excess gates at airports around the country.
As competitors Delta and Northwest each maintained separate gate operations at out-of-the-way airports that sometimes only saw a couple of flights each day. In many of those markets, the combined operation can easily handle the traffic of both airlines, allowing the company to pare back its real estate.
The Atlanta-based airline told employees that it expects to give up about 170 gates throughout its system as it combines local operations in various markets. The company did not specify the precise benefit from combining operations, but said it "translates into multimillions of dollars of rental savings."
Delta has pledged to cut about $2 billion in annual costs by 2012 as a result of the merger. -
Lou Whiteman
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