About
the Merger
Delta
and Northwest are joining together to create America's premier global
airline, offering more convenient connections between more destinations in
the United States and around the world than any other U.S.-based carrier.
The merger creates a stronger, more resilient airline positioned to thrive
in the increasingly competitive global marketplace.
|
|
A
Different Kind of Merger for a Different Time
Times have changed
.
Significant economic pressures from record fuel prices and intense competition,
particularly from discount carriers and foreign airlines based in Europe, the
Middle East and Asia have fundamentally changed the airline industry in recent
decades. This new environment has resulted in diminished profits,
restructurings, more than 150,000 lost jobs and financial losses of over $29
billion among U.S. network carriers since 2001.
This is a different kind of
merger
. The combination of Delta and Northwest is a merger based on
addition, not subtraction, and it will open a world of opportunities for
customers and employees. This merger brings together the compatible strengths,
networks and workforces of two complementary airlines to create a global U.S.
flag carrier and stronger worldwide competitor. The combined company will become
more profitable by expanding its global access and better utilizing its combined
fleet. And because the combination brings together two geographically distinct
route networks with very little overlap, this merger will be pro-competitive,
and discount carriers and other network airlines will remain strong and growing
competitors.
Learn more about why the
Delta-Northwest merger offers unprecedented benefits for
employees
,
customers
, and
communities
.
A
Different Kind of Merger
A Delta
and Northwest combination is different and will create a new paradigm for
consolidation within the airline industry. The new airline, which will be called
Delta, will provide employees with greater job security and a more stable
platform for future growth in the face of significant economic pressures from
rising fuel costs and intense competition.
The
merger of Delta and Northwest is unique because all U.S.-based employees will be
provided an equity stake in the new airline; there will be no hub closures; and
complementary route networks will be combined.
In sharp
contrast, the US Airways attempted takeover of Delta in 2006 would have only
been good for Wall Street because it was based on cutting jobs, cutting service,
and reducing competition.
US
Airways/Delta Hostile Takeover
|
Delta/Northwest
Combination
|
·
Overlap of schedules and hubs caused monopoly concerns
o
45 overlapping nonstop domestic routes
o
22 million passengers would have been affected by reduced
competition (duopoly or monopoly service)
|
·
Complementary networks with virtually no overlap
·
Only 12 overlapping nonstop routes
·
There are only 4 routes where the combined company would offer the
only domestic nonstop service, affecting fewer than 600 passengers a
day
|
·
Hub closures
o
US
Airways takeover would have resulted in hub closures in New York-JFK and
Charlotte
|
·
All hubs maintained
o
No hub closures
|
·
US Airways takeover would have resulted in reductions at the
expense of Delta employees
·
Job losses at all levels
·
Delta employees opposed the takeover
|
·
Employees provided with an equity stake in the combined
airline
·
There will be no involuntary furloughs of frontline employees or
hub closures as a result of this transaction.
·
Delta and Northwest employees will enjoy reciprocal pass privileges
on both airlines’ worldwide networks, beginning as soon as possible during
the regulatory review process
·
Existing pension plans for both companies’ employees will be
protected
·
Frontline employees of both airlines will be provided seniority
protection through a fair and equitable seniority integration
process
|
·
Limited new international market opportunities
·
US Airways international network overlaps with Detla’s in
Europe and the Caribbean
·
Synergy problems created due to membership in different
international alliances
|
·
Creation of the premier global U.S. airline
·
Creates an unrivaled global network by combining Northwest’s
leading positions in Canada and Asia with Delta's strength across the
Caribbean, Latin America, Europe, the Middle East and Africa
·
Strengthens existing SkyTeam relationship and secures its
leadership position in an increasingly competitive global airline
environment
|
·
Merger would have saddled the combined airline with $5 billion of
new debt
|
·
Equity-based transaction creates no new
debt
|
US
Airways and Delta passengers come from the same regions - Northwest serves a
different base.
Delta
and US Airways passengers are concentrated in the Eastern
US
|
Delta
and Northwest carry distinct passenger bases
|
|
|
The
Facts on Fuel
High fuel
prices are forcing airlines to reduce service. The combination of Delta and
Northwest creates a company with a more resilient business model that is better
able to withstand volatile fuel prices than either can on a standalone
basis.
Record
fuel prices have fundamentally changed the economics of the airline industry.
Fuel is the highest single expense for Delta and Northwest, significantly
eroding the financial benefits of restructuring and placing the airlines’ new
found strength and stability at long-term risk.
In 2008,
the consequences of record fuel prices on the airline industry have been
unprecedented. At the beginning of 2007, oil prices were approximately $55 a
barrel. Now, oil prices have nearly doubled.
More
than 40% of every dollar of passenger revenue now goes toward fuel
expense.
Source:
Internal analysis: 1Q 2003 and 1Q 2008 fuel expense as a percent of passenger
revenue
|
·
|
In
the first half of 2008, record fuel prices have forced network carriers to
reduce the number of domestic seats available by nearly 4
percent.
|
|
·
|
High
fuel prices have caused airlines to mothball fuel inefficient aircraft -
especially smaller regional jets - which provide service to many smaller
communities.
|
|
·
|
In
the first half of 2008 the industry has seen the bankruptcy or shutdown of
five U.S. carriers.
|
Fuel
prices have risen dramatically.
Source:
Department of Energy – NYMEX light sweet crude
Fares
have not kept up with rising fuel costs.
Despite
successful fuel conservation and operational efficiency efforts, airlines have
been unable to offset surging fuel prices. Furthermore, the cost of fuel has
largely not been passed along to customers. In fact, since 2002 airfares have
barely kept pace with inflation.
1/
Average monthly closing price of NYMEX light sweet crude
2/
BLS Consumer Price Index (CPI) for All Items, Urban Consumers
3/
BLS CPI for Airline Fares, Urban Consumers
Source:
Department of Energy, Bureau of Labor Statistics (BLS)
This merger will help offset record
fuel prices.
Given the
dramatic increase in fuel costs – which now equals approximately $4 billion
annually for Delta and Northwest combined – consolidation provides a strategic
option to build a more resilient business model that is better able to withstand
volatile fuel prices than either airline can on a standalone basis.
The
revenue and cost synergies achieved through this merger will help offset rising
fuel costs in three ways:
|
·
|
Increased
revenues as a result of increased size and scope, leading to improved
corporate contracting thanks to better options for
customers.
|
|
·
|
More
efficient aircraft routing to better match capacity to
demand.
|
|
·
|
Higher
average yields driven by more international customers and routes where
fares better cover the cost of
fuel.
|
A
Global Competitor
Combining
the complementary international networks of Delta and Northwest will create a
global U.S. flag carrier strongly positioned to compete with foreign airlines
that are continuing to increase service to the United States. It will be
uniquely positioned to provide customers worldwide access – something no U.S.
carrier can offer today.
This
transaction is good for customers and good for global competition.
|
·
|
Open
Skies agreements and consolidation among foreign carriers are creating
stronger competitors that are expanding into new U.S. and international
markets.
|
|
·
|
The
Open Skies agreement between the U.S. and the European Union, effective
March 2008, has expanded aviation markets around the world. Now any
European or U.S. airline is allowed to fly between any city in the EU and
any city in the U.S., giving European carriers greater access to new U.S.
markets.
|
|
·
|
The
European Commission’s more liberal stance on mergers has allowed European
carriers to combine, leading to greater efficiencies and reinvestment in
new customer services.
|
|
·
|
Start-up
carriers such as Eos, Silverjet, and L'Avion are increasing competition
for global business travelers in markets such as New York-London by
offering an all-premium class cabin with enhanced
amenities.
|
This
transaction makes possible international expansion that cannot be done
organically.
This
combination will expand Delta’s international and domestic reach, and there will
be no reductions in the number of hubs.
|
·
|
Northwest
cannot establish a European and Latin American presence in the near term
without unrealistic capital expenditures and fleet
purchases.
|
|
·
|
A
Delta and Northwest merger will allow Northwest to offer customers access
to Delta’s extensive European and Latin American networks in a
cost-efficient way.
|
|
·
|
Delta
cannot expand into many Asian markets due to restrictive bilateral
agreements with the U.S. For example, because of a 1952 bilateral aviation
agreement between the U.S. and Japan, Northwest is one of only two U.S.
carriers that have extensive access to Japanese markets and the ability to
connect passengers through Japan to other markets in
Asia.
|
|
·
|
A
Delta and Northwest merger will allow Delta’s customers to benefit from
greater access to Northwest’s 3 Japanese markets and 11 other Asia/Pacific
markets.
|
This
transaction creates a broader platform for international growth.
The
combined company and its regional partners will provide access to more than 390
destinations in 67 countries.
|
·
|
Through
the SkyTeam Alliance, passengers will have access to more than 840
destinations in 162 countries.
|
Key
Merger Facts
Stock
Ticker:
|
NYSE:
DAL
|
NYSE:
NWA
|
Headquarters:
|
Atlanta
|
Minneapolis/St.
Paul
|
Industry
Position:
|
·
Third largest carrier in the U.S. (13.2% of domestic available seat
miles / ASMs)
·
Fourth largest carrier in the world (4.1% of worldwide
ASMs)
|
·
Seventh largest carrier in the U.S. (7.3% of domestic
ASMs)
·
Ninth largest carrier in the world (2.6% of worldwide
ASMs)
|
Employees:
|
·
Total: 48,400 (55,000 including Comair)
·
Pilots: 6,280
·
Flight Attendants: 11,060
·
Maintenance: 6,980
·
Reservations: 4,250
·
Airport: 14,360
·
Corporate: 5,070
·
Other: 400
·
Comair total: 6,600
|
·
Total: 29,000 (32,800 including Mesaba and Compass)
·
Pilots: 4,490
·
Flight Attendants: 7,680
·
Maintenance: 1,090
·
Reservations: 1,900
·
Airport: 7,600
·
Corporate: 3,170
·
Other: 3,070
·
Mesaba total: 3,500
·
Compass total: 300
|
Mainline
Aircraft
(as
of 12/31/07):
|
446
|
356
(including 13 freighters)
|
Regional
Carriers and Aircraft (As of 12/31/07):
|
8
regional carriers operating more than 480 regional
aircraft
|
3
regional carriers operating more than 210 regional
aircraft
|
2007
Passengers Enplaned:
|
109
million
|
66
million
|
2007
RPMs / ASMs (consolidated system):
|
122,065
million / 151,764 million
|
78,320
million / 93,328 million
|
Alliance:
|
SkyTeam
|
SkyTeam
|
Hubs:
|
Atlanta;
Cincinnati; New York-JFK; Salt Lake City
|
Amsterdam;
Detroit; Memphis; Minneapolis/St. Paul; Tokyo-Narita
|
Total
Destinations:U.S. Destinations:Countries Served:Total Daily
Flights:
|
327
212
62
4,200
|
250
200
21
2,500
|
2007
Financials (consolidated system):
|
Revenues:
Pre-Tax
Income:
Net
Income:
|
$19.2
billion
$625
million
$418
million
|
Revenues:
Pre-Tax
Income:
Net
Income :
|
$12.5
billion
$778
million
$556
million
|
Key
Benefits of Merger:
|
·
Merger combines Delta’s strengths in the South, Mountain West,
Northeast, Europe and Latin America with Northwest’s presence in the
Midwest, Canada and Asia; competition preserved and enhanced as a result
of complementary networks
·
No involuntary furloughs of frontline employees expected, employees
to be provided seniority protection and equity in the new
airline
·
Customers, communities to benefit from expanded global route
system, more competitive, financially secure airline
·
No hub closures; improved international access to benefit small
communities
·
Strong financial base with industry-leading liquidity
·
Merger by addition, not subtraction: annual revenue and cost
synergies in excess of $1 billion from more effective aircraft
utilization, a more comprehensive, diversified route system and improved
operational efficiency
|
Combined
Operational Information:
|
Company
Name:
|
Delta
Air Lines
|
Headquarters:
|
Atlanta
with executive offices in Minneapolis/St. Paul, New York, Tokyo, Amsterdam
and Paris
|
CEO:
|
Richard
Anderson
|
Employees:
|
More
than 75,000 employees operating in 67 countries
|
Hubs:
|
Atlanta;
Amsterdam; Cincinnati; Detroit; Memphis; Minneapolis/St.Paul; New
York-JFK; Salt Lake City; Tokyo
|
Destinations:
|
More
than 390 worldwide destinations (With SkyTeam more than 840 destinations
in 162 countries)
|
Board:
|
Seven
directors from Delta Board, including Richard Anderson and current Delta
chairman Daniel Carp; Five directors from Northwest Board, including Roy
Bostock and Doug Steenland; One director from ALPA
|
Global
Ranking:
|
#1
ASM Share (6.8 percent); #1 Flight Share (8.0 percent); and #1 Seat Share
(6.5 percent). As a combined carrier, Delta will be the #1 U.S. carrier to
Japan; #1 U.S. carrier to Europe; #1 U.S. carrier in Africa; #1 U.S.
carrier in the Middle East and India; #2 U.S. carrier in Asia and the #2
U.S. carrier in Latin America.
|
Transaction
Terms:
|
·
Stock-for-stock transaction valued at $17.7 billion:
–
Northwest shareholders receive 1.25 shares of Delta common
stock
–
Consideration represents a 16.8% percent premium to Apr. 14 closing
price
|
History:
|
·
Delta traces its roots back to 1924, when Huff Daland Dusters was
founded as the world's first aerial crop dusting
organization.
·
1928, the company became Delta Air Service.
·
June 17, 1929, Delta inaugurated airline service with the first
passenger flights over a route stretching from Dallas, TX to Jackson, MS,
via Shreveport and Monroe, LA.
·
1941, the company moved its headquarters to Atlanta.
·
1972, Northeast Airlines merged with Delta.
·
1987, Western Airlines merged with Delta and it became the fourth
largest U.S. carrier and fifth largest world carrier. First transpacific
service begins: Atlanta and Portland, OR, to Tokyo.
|
·
Northwest began on October 1, 1926, flying mail between
Minneapolis/St. Paul and Chicago.
·
Passenger service began in 1927.
·
July 15, 1947, Northwest pioneered the Great Circle route to Asia,
with service to Tokyo, Seoul, Shanghai, and Manila.
·
October 1, 1986, Northwest completed the acquisition of Republic
Airlines. Northwest's work force expanded overnight from less than 17,000
to more than 33,000.
·
1991, Northwest and KLM Royal Dutch Airlines launched their first
joint service, twice-weekly flights between Minneapolis/St. Paul and
Amsterdam.
|
WHERE
TO FIND ADDITIONAL INFORMATION
Delta
Media Relations: 404 715 2554
Delta
Investor Relations: 404 715 2170
Brunswick
Group: 212 333 3810
Northwest
Media Relations: 612 726 2331
Northwest
Investor Relations: 800 953 3332
Forward
Looking Statements
This
press release includes “forward-looking statements” within the meaning of the
safe harbor provisions of the United States Private Securities Litigation Reform
Act of 1995. Words such as “expect,’ “estimate,” “project,” “budget,”
“forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar expressions are
intended to identify such forward-looking statements. These forward-looking
statements include, without limitation, Delta's and Northwest’s expectations
with respect to the synergies, costs and charges and capitalization, anticipated
financial impacts of the merger transaction and related transactions; approval
of the merger transaction and related transactions by shareholders; the
satisfaction of the closing conditions to the merger transaction and related
transactions; and the timing of the completion of the merger transaction and
related transactions.
These
forward-looking statements involve significant risks and uncertainties that
could cause the actual results to differ materially from the expected results.
Most of these factors are outside our control and difficult to predict. Factors
that may cause such differences include, but are not limited to, the possibility
that the expected synergies will not be realized, or will not be realized within
the expected time period, due to, among other things, (1) the airline pricing
environment; (2) competitive actions taken by other airlines; (3) general
economic conditions; (4) changes in jet fuel prices; (5) actions taken or
conditions imposed by the United States and foreign governments; (6) the
willingness of customers to travel; (7) difficulties in integrating the
operations of the two airlines; (8) the impact of labor relations, and (9)
fluctuations in foreign currency exchange rates. Other factors include the
possibility that the merger does not close, including due to the failure to
receive required stockholder or regulatory approvals, or the failure of other
closing conditions.
Delta
cautions that the foregoing list of factors is not exclusive. Additional
information concerning these and other risk factors is contained in Delta’s and
Northwest’s most recently filed Forms 10-K. All subsequent written and oral
forward-looking statements concerning Delta, Northwest, the merger, the related
transactions or other matters and attributable to Delta or Northwest or any
person acting on their behalf are expressly qualified in their entirety by the
cautionary statements above. Delta and Northwest do not undertake any obligation
to update any forward-looking statement, whether written or oral, relating to
the matters discussed in this news release.
Additional
Information About the Merger and Where to Find It
In
connection with the proposed merger, Delta will file with the Securities and
Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will
include a joint proxy statement of Delta and Northwest that also constitutes a
prospectus of Delta. Delta and Northwest will mail the joint proxy
statement/prospectus to their stockholders. Delta and Northwest urge investors
and security holders to read the joint proxy statement/prospectus regarding the
proposed merger when it becomes available because it will contain important
information. You may obtain copies of all documents filed with the SEC regarding
this transaction, free of charge, at the SEC’s website (
www.sec.gov
). You may also
obtain these documents, free of charge, from Delta’s website (
www.delta.com
) under the tab
“About Delta” and then under the heading “Investor Relations” and then under the
item “SEC Filings.” You may also obtain these documents, free of charge, from
Northwest’s website (
www.nwa.com
) under the tab
“About Northwest” and then under the heading “Investor Relations” and then under
the item “SEC Filings and Section 16 Filings.”
Delta,
Northwest and their respective directors, executive officers and certain other
members of management and employees may be soliciting proxies from Delta and
Northwest stockholders in favor of the merger. Information regarding the persons
who may, under the rules of the SEC, be deemed participants in the solicitation
of Delta and Northwest stockholders in connection with the proposed merger
will be set forth in the proxy statement/prospectus when it is filed with the
SEC. You can find information about Delta’s executive officers and directors in
its Annual Reports on Form 10-K (including any amendments thereto), Current
Reports on Form 8-K and other documents that have previously been filed with the
SEC since April 30, 2007 as well as in its definitive proxy statement to be
filed with the SEC related to Delta’s 2008 Annual Meeting of Stockholders. You
can find information about Northwest’s executive officers and directors in its
Annual Reports on Form 10-K (including any amendments thereto), Current Reports
on Form 8-K and other documents that have previously been filed with the SEC
since May 31, 2007 as well as in its definitive proxy statement to be filed with
the SEC related to Northwest’s 2008 Annual Meeting of Stockholders. You can
obtain free copies of these documents from Delta and Northwest using the contact
information above.
# #
#
About
the Merger
Merger
Timeline
Combining
Delta and Northwest will take time. The merger is subject to several regulatory
approvals from U.S. and foreign antitrust authorities. It is expected that the
regulatory review period will be completed later this year.
Until the
transaction receives required approvals, there will be no changes to either
airline’s flight schedule, frequent flyer program, customer service, or
corporate structure as a result of the transaction.
Pro-Competition
The Delta
and Northwest merger will combine complementary route networks with very little
overlap to offer customers service to more global destinations than any other
U.S. carrier while preserving and enhancing competition.
Because
Delta and Northwest will bring together geographically distinct route networks
with minimal overlap, this merger does not raise antitrust concerns in domestic
or international markets.
The
combination of Delta’s strengths in the East, Southeast and Mountain West and
Northwest’s strength in the Midwest creates very little domestic
overlap.
|
·
|
There
are only 12 routes where Delta and Northwest both offer domestic nonstop
flights; after the merger, 8 of those city pairs will still have nonstop
competition from at least 1 other
airline.
|
|
·
|
There
are only 4 routes where the combined company would offer the only nonstop
service, affecting fewer than 600 passengers a
day.
|
|
·
|
After
the merger the U.S. airline industry will still be highly competitive, and
no airline will have more than a 20% share of domestic
passengers.
|
There is very little overlap in the
passenger traffic served by Delta and Northwest.
Source:
DOT O&D Survey, Twelve months ended 3Q07
The
combination of Delta’s strengths in Europe, Africa and Latin America with
Northwest’s strength in Asia creates an unrivaled international network while
preserving and enhancing competition in all markets.
|
·
|
Because
Delta and Northwest are both members of the SkyTeam Alliance, the
combination strengthens the existing SkyTeam relationship and secures its
leadership position in an increasingly competitive global airline
environment.
|
Delta
and Northwest bring together distinct international networks.
Source:
OAG, January 2008 – December 2008
Customers
will have new alternatives to established market leaders.
The
new, more global network of the combined airline will be able to compete with
carriers that currently dominate some markets.
|
·
|
Western
U.S. customers traveling to Asia will gain an alternative to United, which
currently offers more service from Western U.S. cities to Asia than any
other carrier.
|
|
·
|
New
York customers gain an improved alternative to Continental. Delta and
Northwest’s combined strengths in Europe, Latin America, Asia and Africa
will enhance competition from New
York.
|
|
·
|
Los
Angeles customers gain an improved alternative to United, which currently
provides the most extensive service from LAX to markets in Asia, Latin
America, and the U.S. The combination of Delta’s domestic and Latin
American networks with Northwest’s Asian network rounds out Delta’s
offering to enhance competition.
|
Customers
will benefit from continued strong competition within the airline industry after
the merger of Delta and Northwest.
The
growth of discount airlines will continue to fuel competition.
|
·
|
Discount
airlines carry one third of domestic
passengers.
|
|
·
|
Southwest
Airlines carries more domestic passengers than Delta and Northwest
combined.
|
|
·
|
Discount
airlines currently serve every U.S. legacy airline hub city and have built
their own hubs in over half of these cities. Discount airlines operate
hubs in 3 Delta and Northwest hubs, in addition to serving all Delta and
Northwest hubs and focus cities.
|
|
·
|
Discount
airlines account for 60% of outstanding narrowbody aircraft orders,
indicating that continued discount airline expansion is
assured.
|
|
·
|
Discount
airlines have experienced a 60% increase in both departures and cities
served since 2000.
|
|
·
|
Discount
airlines are expanding into international markets and smaller
communities.
|
Competition
is growing from foreign airlines based in Europe, the Middle East and
Asia.
Open
Skies agreements and mergers are making foreign airlines stronger
competitors.
|
·
|
The
Open Skies agreement between the U.S. and the European Union, effective
March 2008, has exanded aviation markets around the world. Now any
European or U.S. airline is allowed to fly between any city in the EU and
any city in the U.S., giving European carriers greater access to new U.S.
markets.
|
|
·
|
The
European Commission’s more liberal stance on mergers has allowed European
carriers to combine, creating more efficient, competitive and financially
stable carriers.
|
|
·
|
Start-up
carriers such as Eos, Silverjet, and L'Avion are adding new flights in big
markets like New York-London with all-business class cabins, introducing
greater competition for the global business
traveler.
|
Creating
A Stronger Company
The
merger creates a stronger company that can grow, become more profitable and
deliver value over time.
|
·
|
The
combined company will have a more resilient business model that will be
better able to manage through an economic downturn, withstand volatile
fuel prices and innovate and deliver new services for our
customers.
|
|
·
|
Combination
will generate more than $1 billion in annual synergies with no hub
closures.
|
|
·
|
Combination
will enable an accelerated integration in the Air France/KLM joint
venture, creating the industry’s leading alliance
network.
|
|
|
·
#1 carrier to Europe and strong Latin American
presence
·
Strong presence in East and Mountain West
·
Member of SkyTeam alliance
·
3rd largest carrier in the U.S. with 13.2% of domestic
ASMs
·
4th largest carrier in the world with 4.1% of worldwide
ASMs
·
Hubs in Atlanta, Cincinnati, New York City and Salt Lake
City
·
Focus cities in Boston, Los Angeles and Orlando
·
Service to 212 domestic and 115 international
destinations
|
·
International focus on Asia and #1 carrier in U.S.-Japan
market
·
Strong presence in Midwest
·
Member of SkyTeam alliance
·
7th largest carrier in the U.S. with 7.3% of domestic
ASMs
·
9th largest carrier in the world with 2.6% of worldwide
ASMs
·
Hubs in Detroit, Memphis, Minneapolis-St. Paul, Amsterdam and
Tokyo
·
Focus cities in Indianapolis and Seattle
·
Service to 200 domestic and 50 international
destinations
|
Source:
Market share based on 2008 OAG (week sample). Destinations served data based
upon OAG Jan 2008 - Dec 2008 (excluding cancellations and including additions as
of March 28, 2008).
Times
Have Changed
Rising
fuel prices and intense competition have fundamentally changed the U.S. airline
industry.
Fuel
has overtaken labor as highest single expense.
1/
Excludes special charges
Open
Skies agreements and consolidation among foreign carriers are creating stronger
competitors that are expanding into new U.S. and international markets. Fourteen
foreign airlines that did not offer flights to the United States in 2006 are
scheduled to operate flights in 2008.
Click
above for a larger view (PDF)
U.S.
discount carriers command significant market share and continue to
grow.
Sources:
US DOT DB1A Database; 2007 – YTD 3Q2007
LCCs
include: AirTran, Allegiant Air, America West, ATA Airlines, Frontier, JetBlue,
Midway,
National,
SkyBus, Southwest, Spirit, Sun Country and USA 3000 Airlines
Frequently
Asked Questions
Why
is this transaction in the best interest of Delta and Northwest’s employees,
customers and communities?
|
·
|
This
transaction is a win for employees, customers and
communities.
|
|
o
|
Employees
will gain greater job security, an equity stake in the combined airline
and a more stable platform for future growth in the face of significant
economic pressures from rising fuel costs and intense global
competition.
|
|
o
|
Small
communities throughout the United States will enjoy enhanced access to
more destinations worldwide.
|
|
o
|
Customers
also will benefit from the combined carriers’ complementary route
networks, which together will offer people more choice, competitive fares
and a superior travel experience to more cities than any other
airline.
|
Why are Delta and Northwest
merging?
|
·
|
Delta
and Northwest are an ideal strategic fit with complementary and
geographically distinct route
systems.
|
|
·
|
Combining
the airlines will create a more robust platform for profitable growth with
a global presence and an attractive balance of domestic and international
flights.
|
|
·
|
This
merger builds a geographically diverse network – 60% domestic, 40%
international – that is pro-competitive and balanced across the
world.
|
|
·
|
The
merger combines Delta’s strengths in the South, Mountain West, Northeast,
Europe, and Latin America with Northwest’s presence in the Midwest,
Northwest, Canada and Asia with little overlap in the nonstop routes the
two airlines operate.
|
|
·
|
The
combination of Delta and Northwest will enable an accelerated integration
in the Air France/KLM joint venture, creating the industry’s leading
alliance network.
|
|
·
|
Delta
and Northwest’s complementary networks and common membership in the
SkyTeam alliance will ease the integration risk that has complicated some
airline mergers. The common SkyTeam frequent flyer programs,
customer lounges, airline partner networks, and common IT platforms of
both companies have already been partially integrated through the existing
alliance between Delta and
Northwest.
|
Why
are you pursuing this transaction now? Why is this right time for
consolidation?
|
·
|
In
an industry that has shed more than 150,000 jobs from the U.S. network
carriers and lost more than $29 billion since 2001, this transaction
creates a more resilient carrier that is better able to withstand volatile
fuel prices than either company can on a standalone basis. Merging
Delta and Northwest is the most effective way to offset higher fuel
prices, improve efficiencies, increase international presence and fund
long-term investment in the
business.
|
|
·
|
Record
fuel prices have fundamentally changed the economics of the airline
industry. Fuel is the highest single expense for Delta and
Northwest, significantly eroding the financial benefits of restructuring
and placing the airlines’ new found strength and stability at long-term
risk. At the beginning of 2007, oil prices were approximately $55 a
barrel. Now, oil prices have nearly
doubled.
|
|
·
|
The
dramatic run-up in the price of oil equates to a cost increase of
approximately $4 billion for the combined airline. This increase
makes this transaction, which is expected to generate more than $1 billion
in annual cost and revenue synergies, even more compelling. In the
first half of 2008 alone, record fuel prices have forced network carriers
to reduce the number of domestic seats available by nearly 4%. In
addition, the industry has seen the bankruptcy / shut down of five U.S.
carriers.
|
How does this transaction improve the
financial condition of the two companies?
|
·
|
Combining
the two carriers will generate more than $1 billion in annual cost and
revenue synergies without hub closures, and will be accretive to current
Delta shareholders in year one excluding one-time costs. The
transaction will help preserve the best in class cost structure of both
airlines.
|
|
·
|
The
combined company will have one of the strongest balance sheets in the U.S.
airline industry and a more stable platform for future growth in the face
of significant economic pressures and intense global
competition.
|
How
is this deal different from previous proposed airline mergers (i.e. Delta-US
Airways in 2006, America West-US Airways in 2005, or United-US Airways in
2000)?
|
·
|
Unlike
the US Airways proposal, this transaction is about addition, not
subtraction, and will expand Delta’s global and domestic
reach.
|
|
·
|
The
significant overlap of the US Airways and Delta networks in the East would
have resulted in a significant reduction in competition, hub closures,
substantial job losses and fewer flights to smaller communities.
That is why it was opposed by employees, customers and communities.
Delta and Northwest’s complementary route networks have little overlap and
there is no need for hub closures.
|
|
·
|
No
other airline merger has given employees the same opportunities to benefit
from the success of integration and the financial rewards of stronger
performance. All U.S.-based employees of both airlines will be
provided equity in the new airline. International employees will
receive cash awards in lieu of
equity.
|
|
·
|
Previous
airline mergers have been opposed by employees. This transaction is
supported by Delta’s pilots who have reached an agreement to extend their
collective bargaining agreement through the end of
2012.
|
How
does this deal help Delta and Northwest compete internationally?
|
·
|
With
its extended international network the company will be well positioned to
compete strongly in the global
market.
|
|
o
|
The
combined carrier will be America’s premier global airline, offering
service between the United States and the world's major business
centers.
|
|
o
|
The
combined company will serve more than 390 worldwide destinations creating
more choice on a significant number of international
flights.
|
|
o
|
Customers
of the combined airline will enjoy improved connectivity to Europe, Latin
America, Africa and Asia. Delta customers will benefit from
Northwest’s extensive network of Asian markets such as Tokyo and Beijing,
and Northwest’s customers will have access to Delta’s strength throughout
Europe, the Caribbean and Latin America. Both companies’ customers
benefit from creating the leading carrier from the U.S. to Europe, the
Middle East, Africa and Asia.
|
|
o
|
Internationally,
the combined carrier will have a broader network closer in scope and depth
to what other foreign flag carriers already possess – and a significant
presence in all key international business markets, with improved
prospects for growing corporate business globally. The combined
carrier will be a stronger competitor against foreign flag airlines that
are introducing new international flights as a result of Open Skies
agreements that have expanded aviation markets around the world and
created a more competitive international
environment.
|
|
·
|
This
transaction will also strengthen the SkyTeam alliance and strengthen its
position in an increasingly competitive global
market.
|
What
affect will this transaction have on worldwide competition?
|
·
|
The
Delta-Northwest combination will be pro-competitive given that there is
little overlap in the nonstop routes each serves. Discount carriers
and other network airlines will remain strong and growing competitors in
the combined airline’s markets. In fact, between 2000 and 2007, the
market share of discount carriers has climbed from 24 to 34 percent of
domestic traffic.
|
Will
Delta employees now work on Northwest’s flights and/or will Northwest employees
now work on Delta flights?
|
·
|
Until
the deal is completed, Delta and Northwest will continue to operate as two
separate airlines. The announcement of the merger agreement is only
the beginning of the process, which will require the approval of Delta and
Northwest shareholders, as well as regulatory approvals. We
currently anticipate the transaction closing later this
year.
|
How
does this transaction create more job security for employees of Delta and
Northwest?
|
·
|
The
combination of Delta and Northwest will create a company with one of the
strongest balance sheets among major U.S. airlines, permitting it to
reinvest in the fleet and services to enhance the customer
experience. The combined company will be stronger and better able to
offset higher fuel prices and improve efficiencies, increase international
presence and fund long-term investment in the
business.
|
How
will the merger affect the pay of Delta and Northwest employees?
|
·
|
It
is the goal of Delta to harmonize the pay and benefits of all of the
workgroups over time. As a general rule, the non-union employees of Delta
enjoy higher pay and benefits than their Northwest counterparts.
During the integration of the two carriers, Delta’s frontline,
non-contract employees will continue to receive pay increases in keeping
with Delta’s commitment to move frontline employees to industry-standard
pay by the end of 2010. Northwest’s contract frontline employees
will continue to receive pay increases in accordance with their existing
collective bargaining
agreements.
|
|
·
|
Internationally,
Delta’s salary reviews by country will occur as scheduled throughout
2008. All countries will be reviewed to assess local competitiveness
with industry standards.
|
Will employees of Delta and Northwest
get cash or stock in the combined company as a result of the merger?
|
·
|
Yes,
U.S.-based non-pilot employees of both companies will be provided a 4
percent equity stake in the new airline upon
closing.
|
How
will the merger impact the seniority status of Delta and Northwest
employees?
|
·
|
Frontline
employees of both airlines will be provided seniority protection through a
fair and equitable seniority integration process, as the airlines are
combined.
|
|
·
|
Seniority
integration for internationally based employees will be addressed on an
individual, country-by-country
basis.
|
How
will frontline jobs at Delta and Northwest be impacted as a result of this
merger?
|
·
|
There
are no involuntary job furloughs of U.S.-based Delta and Northwest
frontline employees or hub closures expected as a result of this
transaction.
|
|
·
|
Due
to the complexity of international labor law, the specific effect of the
merger on employees outside of the U.S. will have to be evaluated on a
country-by-country basis. As always, Delta and Northwest will
continue to treat their employees with dignity and respect and abide by
local labor laws.
|
Will
employees of Delta and Northwest have reciprocal pass privileges on both
airlines?
|
·
|
Delta
and Northwest employees will enjoy reciprocal pass privileges on both
airlines’ worldwide networks, beginning as soon as possible during the
regulatory review process.
|
Will
there be any changes to the benefits package of Delta and Northwest
employees?
|
·
|
Until
the deal is completed, Delta and Northwest will continue to operate as two
separate airlines with no changes to existing benefits as a result of the
transaction. Over the course of the regulatory process, a detailed
integration plan will be created by a committee made up of leaders and
employees from both airlines. The committee will handle such
decisions as how best to bring together the benefits packages for the two
companies.
|
Since
Delta’s workforce is largely non-unionized and Northwest’s is unionized, will
there be union elections?
|
·
|
Upon
completion of the merger, the status of union representation among the
various workgroups, along with the status of Northwest’s union contracts,
will be resolved through the appropriate governmental
processes.
|
What
does the merger mean for ticket pricing?
|
·
|
Delta
will continue to compete in a competitive pricing marketplace both at home
and abroad. In fact, in the U.S., the market share commanded by
discount carriers has climbed from 24 to 34 percent of industry capacity
between 2000 and 2007. Discount airlines now represent approximately
1/3 of the domestic U.S. market. And post-merger, Southwest will
continue to have the highest market share of domestic
passengers.
|
|
·
|
Internationally,
Delta will continue to compete with major foreign carriers which are
increasing flights to the United States under Open Skies aviation
agreements that have expanded aviation markets around the
world.
|
What
changes will customers see immediately?
|
·
|
Until
the transaction receives required approvals, there will be no changes to
either airline’s flight schedule, frequent flyer program, customer
service, or corporate structure as a result of the
transaction.
|
|
·
|
Once
the transaction closes, any operational changes will be clearly
communicated to all customers. We are committed to maintaining our
industry-leading customer experience and will ensure this transition is
seamless.
|
Can
I fly Northwest with my Delta ticket? Can I fly Delta with my Northwest
ticket?
|
·
|
No.
The announcement of a merger agreement is the beginning of a long process
that could take up to a year to complete. Until the transaction
closes, it will be business as usual at both airlines, with no overlap in
operations. Once the transaction closes, any operational changes
will be clearly communicated to all customers. We are committed to
maintaining our industry-leading customer experience and will ensure this
transition is seamless.
|
Do
customers who have a future travel reservation with Northwest need to rebook
with Delta?
|
·
|
No,
you can keep your Northwest reservation. Once the transaction has
closed, any operational changes will be clearly communicated to all
customers and it will be business as usual at both airlines. We are
committed to maintaining our industry-leading customer experience and will
ensure that this transition is seamless. There will be no need to
rebook confirmed travel.
|
Will
there be changes to flight schedules in my city?
|
·
|
The
two carriers have very little overlap of route networks. Changes are
expected to focus on improving access to worldwide connections via a
combined network of hubs.
|
What
changes can SkyMiles and WorldPerks members expect as a result of this
transaction?
|
·
|
Customers
will be able to fly to more destinations, have more flight scheduling
choices and have greater ability to earn and redeem their SkyMiles around
the world.
|
|
·
|
Customers
can already earn and redeem frequent flyer miles on both Delta and
Northwest flights. Shortly after the deal closes, we will announce a
plan for consolidating miles into one account, and because of the breadth
of the new network, customers will have greater opportunities to earn and
redeem miles. As with all of our operations, there will be no
combination of frequent flyer programs until the transaction
closes.
|
|
·
|
Customers
will have the ability to earn miles with more than 100 worldwide hotel,
rental car, retail, financial and travel-related
partners.
|
|
·
|
The
merger strengthens the SkyTeam alliance and the many travel benefits
associated with these airline partners, in an increasingly competitive
global airline environment.
|
Will this merger affect service to
small and rural communities?
|
·
|
This
combination will expand Delta’s international and domestic reach, and
there will be no reductions in the number of
hubs.
|
|
·
|
Delta
will improve worldwide connections to small towns and cities across the
U.S. enhancing their access to the global
marketplace.
|
|
·
|
Following
the merger, Delta will serve more than 140 small communities – more than
any other airline.
|
Will
fares in small communities change as a result of the merger?
|
·
|
Because
there is virtually no overlap between the two companies’ networks (there
are only 12 overlapping non-stop city-pairs of more than 1,000 that both
airlines serve), the competitive landscape will not change as a result of
this transaction.
|
|
·
|
The
combination will also create a company well placed to compete with
low-cost carriers.
|
Will
Atlanta remain the airline’s main headquarters?
|
·
|
Yes.
Atlanta will continue to be the world’s preeminent airline hub and
hometown to the world’s largest airline. The merger will expand
Delta’s global network, and allow direct service from Atlanta to key
markets in Asia. This increased global service will offer Atlanta
and the entire Southeast improved access to the international community –
particularly the growing economies of Asia – and the economic, trade and
travel benefits that come with it.
|
What
will happen to employees in Atlanta?
|
·
|
This
merger will provide employees with greater job security, an equity stake
in the combined airline and a more stable platform for future growth in
the face of significant economic pressures from rising fuel costs and
intense competition.
|
|
·
|
With
the headquarters of the new larger airline in Atlanta and more
international flights from Atlanta’s Hartsfield airport, there will likely
be increased earning potential and job opportunities for employees and
flight crews.
|
|
·
|
There
will be no involuntary furloughs of frontline employees.
Additionally, all Delta and Northwest employees will enjoy
reciprocal pass privileges on both airlines, beginning as soon as possible
during the regulatory review
process.
|
Will
this merger affect ticket prices in Atlanta?
|
·
|
Because
there is virtually no overlap between the two companies’ networks (there
are only 12 overlapping non-stop city pair routes of more than 1,000 that
both airlines serve), the competitive landscape will not change as a
result of this merger.
|
Will
Delta/Northwest change flights to and from Atlanta?
|
·
|
Delta/Northwest
combines two complementary networks with very little overlap. In
fact, the merger will mean enhanced access from Atlanta to more
destinations worldwide.
|
Will
there be any changes to flight schedules to/from small communities served from
Atlanta?
|
·
|
This
transaction will enhance service to smaller cities and rural communities,
and Atlanta is an important provider of service to these
communities.
|
|
·
|
Delta
and Northwest are proud of their shared histories of being committed
providers of service to small communities across the U.S. The combined
airline will serve more than 140 small communities - more than any other
airline.
|
Will
Delta/Northwest continue to provide philanthropic support in
Atlanta?
|
·
|
Yes!
Delta has a long history of being an active and positive supporter of the
Atlanta community. We look forward to strengthening those
ties.
|
What
changes can we expect in Cincinnati?
|
·
|
Cincinnati
will continue to be a vital part of the merged network, with extensive
nonstop international and domestic
service.
|
|
·
|
Cincinnati
is home to a major reservations
center.
|
What
will happen to employees in Cincinnati?
|
·
|
This
merger will provide employees with greater job security, an equity stake
in the combined airline and a more stable platform for future growth in
the face of significant economic pressures from rising fuel costs and
intense competition.
|
|
·
|
There
will be no involuntary furloughs of frontline employees.
Additionally, all Delta and Northwest employees will enjoy reciprocal pass
privileges on both airlines, beginning as soon as possible during the
regulatory review process.
|
Will
this merger affect ticket prices in Cincinnati?
|
·
|
Because
there is virtually no overlap between the two companies’ networks (there
are only 12 overlapping non-stop city pair routes of more than 1,000 that
both airlines serve), the competitive landscape will not change as a
result of this merger.
|
Will
we see any changes to flight schedules in Cincinnati?
|
·
|
Delta/Northwest
combines two complementary networks with very little overlap. In
fact, the merger will mean enhanced access from Cincinnati to more
destinations worldwide.
|
Will
there be any changes to flight schedules to/from small communities served from
Cincinnati?
|
·
|
This
transaction will enhance service to smaller cities and rural communities,
and Cincinnati is an important provider of service to these
communities.
|
|
·
|
Delta
and Northwest are proud of their shared histories of being committed
providers of service to small communities across the U.S. The combined
airline will serve more than 140 small communities - more than any other
airline.
|
Will
Delta/Northwest continue to provide philanthropic support in
Cincinnati?
|
·
|
Yes!
Delta has a long history of being an active and positive supporter of the
Cincinnati community. We look forward to strengthening those
ties.
|
What
changes will we see in Detroit?
|
·
|
Detroit
will continue to be one of the combined airline’s largest hubs, with
extensive nonstop international and domestic
service.
|
What
will happen to employees in Detroit?
|
·
|
This
merger will provide employees with greater job security, an equity stake
in the combined airline and a more stable platform for future growth in
the face of significant economic pressures from rising fuel costs and
intense competition.
|
|
·
|
There
will be no involuntary furloughs of U.S. frontline employees.
Additionally, all Delta and Northwest employees will enjoy
reciprocal pass privileges on both airlines, beginning as soon as possible
during the regulatory review
process.
|
Will
this merger affect ticket prices in Detroit?
|
·
|
Because
there is virtually no overlap between the two companies’ networks (there
are only 12 overlapping non-stop city pair routes of more than 1,000 that
both airlines serve), the competitive landscape will not change as a
result of this merger.
|
Will
we see any changes to flight schedules in Detroit?
|
·
|
Delta/Northwest
combines two complementary networks with very little overlap. In
fact, the merger will mean enhanced access from Detroit to more
destinations worldwide.
|
Will
there be any changes to flight schedules to/from small communities served from
Detroit?
|
·
|
This
transaction will enhance service to smaller cities and rural communities,
and Detroit is an important provider of service to these
communities.
|
|
·
|
Delta
and Northwest are proud of their shared histories of being committed
providers of service to small communities across the U.S. The combined
airline will serve more than 140 small communities - more than any other
airline.
|
Will
Delta/Northwest continue to provide philanthropic support in
Detroit?
|
·
|
Yes!
Delta has a long history of being an active and positive supporter of the
Detroit community. We look forward to strengthening those
ties.
|
What
changes can we expect in Memphis as a result of this transaction?
|
·
|
Delta/Northwest
combines two complementary networks with very little overlap. In
fact, the merger will mean enhanced access from Memphis to more
destinations worldwide. The new combined company will maintain all of its
hubs, including Memphis.
|
What
will happen to employees in Memphis?
|
·
|
This
merger will provide employees with greater job security, an equity stake
in the combined airline and a more stable platform for future growth in
the face of significant economic pressures from rising fuel costs and
intense competition.
|
|
·
|
There
will be no involuntary furloughs of U.S. frontline employees.
Additionally, all Delta and Northwest employees will enjoy
reciprocal pass privileges on both airlines, beginning as soon as possible
during the regulatory review
process.
|
Will
this merger affect ticket prices in Memphis?
|
·
|
Because
there is virtually no overlap between the two companies’ networks (there
are only 12 overlapping non-stop city pair routes of more than 1,000 that
both airlines serve), the competitive landscape will not change as a
result of this merger.
|
Will
we see any changes to flight schedules in Memphis?
|
·
|
Delta/Northwest
combines two complementary networks with very little overlap. In
fact, the merger will mean enhanced access from Memphis to more
destinations worldwide.
|
Will
there be any changes to flight schedules to/from small communities served from
Memphis?
|
·
|
This
transaction will enhance service to smaller cities and rural communities,
and Memphis is an important provider of service to these
communities.
|
|
·
|
Delta
and Northwest are proud of their shared histories of being committed
providers of service to small communities across the U.S. The combined
airline will serve more than 140 small communities - more than any other
airline.
|
Given
Memphis’s proximity to Atlanta, will Memphis remain a hub for the new combined
airline?
|
·
|
Yes.
Because Delta/Northwest combines two complementary networks with
very little overlap, the new combined company will maintain all its hubs,
including Memphis.
|
Will
Delta/Northwest continue to provide philanthropic support in
Memphis?
|
·
|
Yes!
Delta has a long history of being an active and positive supporter of the
Memphis community. We look forward to strengthening those
ties.
|
Will
Minneapolis/St. Paul continue to be a headquarters?
|
·
|
Delta
is committed to retaining significant airline jobs, operations and
facilities in Minnesota. While the company’s worldwide headquarters
will be in Atlanta, Delta will retain executive offices in
Minneapolis.
|
What
will happen to employees in Minneapolis/St. Paul?
|
·
|
Delta
is committed to retaining significant airline jobs, operations and
facilities in Minnesota.
|
|
·
|
This
merger will provide employees with greater job security, an equity stake
in the combined airline and a more stable platform for future growth in
the face of significant economic pressures from rising fuel costs and
intense competition.
|
|
·
|
There
will be no involuntary furloughs of U.S. frontline employees.
Additionally, all Delta and Northwest employees will enjoy reciprocal pass
privileges on both airlines, beginning as soon as possible during the
regulatory review process.
|
Will
this merger affect ticket prices in Minneapolis/St. Paul?
|
·
|
Because
there is virtually no overlap between the two companies’ networks (there
are only 12 overlapping non-stop city pair routes of more than 1,000 that
both airlines serve), the competitive landscape will not change as a
result of this merger.
|
Will
Delta/Northwest change flight schedules to/from Minneapolis/St.
Paul?
|
·
|
Delta/Northwest
combines two complementary networks with very little overlap. In
fact, the merger will mean enhanced access from Minneapolis/St. Paul to
more destinations worldwide.
|
Will
there be any changes to flight schedules to/from small communities served from
Minneapolis/St. Paul?
|
·
|
This
transaction will enhance service to smaller cities and rural communities,
and Minneapolis/St. Paul is an important provider of service to these
communities.
|
|
·
|
Delta
and Northwest are proud of their shared histories of being committed
providers of service to small communities across the U.S. The combined
airline will serve more than 140 small communities - more than any other
airline.
|
Will
Delta/Northwest continue to provide philanthropic support in Minneapolis/St.
Paul?
|
·
|
Yes!
Delta has a long tradition of being an active supporter of the communities
in which we do business. We look forward to teaming up with our new
colleagues at Northwest to make a positive impact in Minneapolis/St.
Paul.
|
What
changes can we expect in New York?
|
·
|
JFK
airport will continue to be one of the combined airline’s largest hubs,
with extensive nonstop international and domestic
service.
|
|
·
|
Delta
will provide more service in the state of New York than any other
airline.
|
What
will happen to employees in New York?
|
·
|
This
merger will provide employees with greater job security, an equity stake
in the combined airline and a more stable platform for future growth in
the face of significant economic pressures from rising fuel costs and
intense competition.
|
|
·
|
There
will be no involuntary furloughs of U.S. frontline employees.
Additionally, all Delta and Northwest employees will enjoy
reciprocal pass privileges on both airlines, beginning as soon as possible
during the regulatory review
process.
|
Will
Delta/Northwest change flight schedules to and from New York?
|
·
|
Delta/Northwest
combines two complementary networks with very little overlap. The
merger will allow the combined carrier to optimize its portfolio of
operating slots to offer more comprehensive service from New York than any
other airline.
|
Will
this merger affect ticket prices in New York?
|
·
|
Because
there is virtually no overlap between the two companies’ networks (there
are only 12 overlapping non-stop city pair routes of more than 1,000 that
both airlines serve), the competitive landscape will not change as a
result of this merger.
|
Will
we see any changes to flight schedules in New York?
|
·
|
This
transaction will enhance service to smaller cities and rural communities,
and New York is an important provider of service to these
communities.
|
|
·
|
Delta
and Northwest are proud of their shared histories of being committed
providers of service to small communities across the U.S. The combined
airline will serve more than 140 small communities - more than any other
airline.
|
How
will the new Delta/Northwest affect congestion in New York?
|
·
|
Better
coordinated schedules and the ability to use larger-gauge aircraft on key
routes through a larger domestic feeder base will further reduce
congestion in the Northeast corridor (i.e. rather than flying 50-seat
regional jets between Detroit and JFK, the new carrier will be able to fly
larger equipment throughout the day thanks to the connectivity of the two
hubs in one network).
|
Will
Delta/Northwest continue to provide philanthropic support in New
York?
|
·
|
Yes!
Delta has a long history of being an active and positive supporter of the
New York community. We look forward to strengthening those
ties.
|
What
changes can we expect in Salt Lake City?
|
·
|
Salt
Lake City will continue to serve as the combined carrier’s gateway to the
Western U.S. with extensive nonstop international and domestic
service.
|
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The
combination of Delta and Northwest will result in enhanced service for the
Salt Lake City hub.
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The
merged airline will provide more service to Utah than any other
airline.
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What
will happen to employees in Salt Lake City?
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This
merger will provide employees with greater job security, an equity stake
in the combined airline and a more stable platform for future growth in
the face of significant economic pressures from rising fuel costs and
intense competition.
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There
will be no involuntary furloughs of U.S. frontline employees.
Additionally, all Delta and Northwest employees will enjoy
reciprocal pass privileges on both airlines, beginning as soon as possible
during the regulatory review
process.
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Will
Delta/Northwest change flight schedules to/from Salt Lake City?
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Delta/Northwest
combines two complementary networks with very little overlap. In
fact, the merger will mean enhanced access from Salt Lake City to more
destinations worldwide.
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Will
this merger affect ticket prices in Salt Lake City?
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Because
there is virtually no overlap between the two companies’ networks (there
are only 12 overlapping non-stop city-pairs of more than 1,000 that both
airlines serve), the competitive landscape will not change as a result of
this merger.
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Will
there be any changes to flight schedules to/from small communities served from
Salt Lake City?
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This
transaction will enhance service to smaller cities and rural communities,
and Salt Lake City is an important provider of service to these
communities throughout the
West.
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Delta
and Northwest are proud of their shared histories of being committed
providers of service to small communities across the U.S. The combined
airline will serve more than 140 small communities - more than any other
airline.
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Will
Delta/Northwest continue to provide philanthropic support in Salt Lake
City?
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Yes!
Delta has a long history of being an active and positive supporter of the
Salt Lake City community. We look forward to strengthening those
ties.
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