Delta Air Lines-Northwest Airlines Merger - After The Announcement

After The Announcement

On September 26, 2008 it was announced that both Delta and Northwest's shareholders had approved the merger. Approval by a federal antitrust review board's blessing was the last step needed to finalize the deal. The proposed merger "is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition," the Justice Department said in a statement issued by its Antitrust Division.

The deal passed through anti-trust overview from the Department of Justice; as most analysis expected, the deal was not blocked, due to the minimal overlap between the two airlines' routes and very little threat to competition in the industry. The merger was also expected to be the subject of several hearings on Capitol Hill. Representative Jim Oberstar of Minnesota, who also serves as chair of the House Committee on Transportation and Infrastructure, made clear his opposition to the merger, and he fought it in Washington. There was also strong support for the merger at the Capitol from legislators from Georgia, including Representative Lynn Westmoreland, Representative David Scott, and Senator Johnny Isakson. On August 7, 2008, the merger won regulatory approval from the European Union.

After a six-month investigation, government economists concluded the merger would likely drive down costs for consumers without curbing competition. On October 29, 2008, the United States Department of Justice approved Delta's plan to acquire Northwest.

Both Delta's and Northwest's operating certificates were merged on December 31, 2009. From a technical standpoint, Northwest has ceased to exist as an independent carrier. Ground operations and reservations systems was later combined on January 31, 2010.