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Sunday, November 22, 
2:19 am

Dept. of Justice clears Delta's purchase of Northwest

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The Department of Justice on Wednesday closed its investigation into Delta Air Lines Inc.'s $3.1 billion deal to buy Northwest Airlines Corp., clearing the way for a deal that would create the world's largest airline.

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Delta and Northwest announced their intention to merge in April, blending Delta's strong eastern U.S. and trans-Atlantic route map with Northwest's traditional strengths in the Midwest and across the Pacific. The companies have already received clearance from shareholders and European regulators, allowing the airlines to complete their transaction in the coming weeks.

Delta must now turn its attention to combining the airlines, with the company planning to spend $600 million on an integration that it expects to yield $2 billion in synergies by 2012. The airline also needs to secure an agreement between the two pilot groups on how to merge their seniority lists, and it is likely to face union elections in the months to come by its flight attendants, mechanics and other work groups. - Lou Whiteman

See Dealwatch: Airlines

Lou Whiteman is The Deal's senior airline reporter.





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