Delta Air Lines Inc., which has spent months running away from market rumors of a potential merger with Northwest Airlines Corp., did little to help that cause Tuesday evening when it announced it has hired former Northwest head Richard Anderson as CEO. Delta and Northwest have been linked since September 2005, when the airlines simultaneously sought bankruptcy protection. Merger rumors between the two airlines, who are partners in the international SkyTeam alliance, were rekindled earlier this year when Delta sought to ward off hostile overtures by US Airways Group Inc. Hiring Anderson, who was CEO of Northwest from 2001-2004 before leaving to become executive vice president of UnitedHealth Group, is sure to strengthen ties between the two airlines and restart talk of a possible merger. However, Northwest and Delta seem more likely to continue on their own for the time to come.
Full coverage available in The Daily Deal and on TheDeal.com.—Lou Whiteman
See Delta's press release
See TheDeal.com story on speculation surrounding the airlines' simultaneous filings
See TheDeal.com story on Delta seeking alternatives to a deal with US Airways
See TheDeal.com story on the difficulties facing airline merger partners
Tags: Delta, Northwest Airlines, deals, m&a, mergers
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