Delta and Northwest: Creating America's Premier Global Airline



	Print this Page \| Email this Page \| PDF About the Merger 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 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. There is increasing competition for global business travelers from overseas carriers - particularly on high traffic routes from major U.S. cities to Europe.

Forward Looking Statements

This website 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 definitive proxy statement filed with the SEC on April 25, 2008 related to Delta’s 2008 Annual Meeting of Stockholders. You can find information about Northwest’s executive officers and directors in its Amendment to its Annual Report on Form 10-K filed with the SEC on April 29, 2008. You can obtain free copies of these documents from Delta and Northwest using the contact information above.

About the Merger Pro-Competition

About the Merger
Pro-Competition