Airline merger talks march on
The chief executive of Northwest Airlines says his carrier could benefit from a merger — if it’s the right deal, according to the AP.
As the Delta Air Lines Inc. board met to discuss the issue, Northwest Airlines Corp. chief Doug Steenland sent an internal memo to employees saying his airline’s board and management team would analyze any deal carefully.
“Most importantly, we will carefully consider the impacts on our own employees and ensure that the outstanding employees of Northwest Airlines are included in this process,” he wrote. “The right transaction could be of benefit to our employees, our shareholders and the communities we serve.”
Mr Steenland didn’t say whether Delta had approached Northwest.
Delta’s board was expected to be asked to allow formal talks between Delta and Northwest and UAL Corp.’s United Airlines, with the idea that Delta would ultimately choose to combine with one of the two.
Mr Steenland said Northwest, which emerged from Chapter 11 bankruptcy in May, is better positioned than most of its competitors to run profitably. But he said fuel price increases have run above the carrier’s projections, making it harder to maintain the same level of profitability and reinvest profits.
Report by David Wilkening
David
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