Airline Shareholders Approve Merger Deal

Shareholders at Delta and Northwest gave overwhelming approval to a proposed merger between the two airlines, according to voting results released yesterday. The deal, which would consist of an acquisition of Northwest by Delta in exchange for stock, would form the world’s largest airline.

Richard Anderson, CEO of Delta, and future chief executive of the merged airline, commended shareholders for their support: “We appreciate that stockholders recognize the benefits the Delta-Northwest merger will offer our company, customers, employees, and the communities we serve. This is another milestone toward completing a merger that brings together two unique airlines with complementary strengths that will offer unmatched global service.”

Delta shareholders approved the proposed merger with a 99 percent vote, while Northwest shareholders gave 98 percent approval. The merger has only to earn the approval of regulators later in the year to go through.

The historically unstable airline industry has been taken its usual corners-cutting approach lately, spurred partly by the rising cost of oil. Many airlines are striving to downgrade their fleet while cutting staff and raising ticket prices.

Northwest CEO Doug Steenland called the merger a means of escaping the worst of the commercial airlines’ current troubles. “The combined carrier will have a stronger balance sheet and best-in-class liquidity, which will put the airline in a position of financial stability,” Steenland said.