The Associated Press reported Wednesday that United and Atlanta-based Delta are in talks about a combination of the nation’s second- and third-largest airlines that would result in the joined company keeping the United name and its Chicago-area headquarters. Officials at both airlines denied the reports, but a potential deal was fresh on everyone’s mind Thursday at a previously scheduled congressional hearing on how to improve air service.
Speaking to Delta’s hometown Atlanta Journal-Constitution newspaper, Richard Anderson issued his strongest denial yet of a pending transaction with United. The executive, who was named CEO of Delta this summer, told a reporter that he hasn’t "had a conversation, at all, with any executive since I came back to the airline industry," the paper reported. "The last time I had a conversation with [United chairman and CEO Glenn F.] Tilton was at an [Air Transport Association] meeting three or four years ago."
But even this comment is unlikely to stop the deal talk altogether. Sources told TheDeal.com Wednesday that although no transaction is imminent, deal chatter is taking place between executives at a number of airlines, Delta and United included. A cynic might note that Anderson seemingly was only speaking of himself — and not any of his underlings — when making his comments.
Anderson faced a grilling from elected officials over the stories. Georgia Rep. Lynn Westmoreland, according to the report, told the executive he felt "blindsided" when he first saw news reports of a possible merger. Westmoreland and other politicians had rallied to Delta’s defense less than a year ago when the airline faced a hostile takeover offer from US Airways Group Inc.
"I was as surprised as you were," Anderson replied. — Lou Whiteman
See The Associated Press report on Delta and United deal talk
See Atlanta Journal-Constitution story with Anderson's comments
See TheDeal.com story on airline merger talk heating up
See TheDeal.com story on Delta fending off a hostile bid by US Airways
See Dealscape story: Is Hillary Clinton behind the UAL-Delta talks?
