Northwest-Delta merger talk heats up again

The possibility of major airline mergers took on new life last week after Delta CEO Richard Anderson, formerly a top executive at Northwest and Continental, told Wall Street analysts that a combination with another large airline would have “obvious benefits” for Delta and its shareholders. Media speculation immediately centered on Northwest Airlines, since Delta and Northwest held preliminary talks about a merger when they were both in bankruptcy – and since Anderson was the top executive there until 2004. Anderson said he and his team are “evaluating the best path forward” for Delta, but he did not confirm any specific merger talks at present. Anderson and Delta management are obviously looking to make some major changes, as evidenced in the airline’s newly announced joint venture partnership with Air France/KLM (see above story), and reports in financial media that Delta might be considering the sale of its wholly-owned Comair subsidiary.