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Delta-Northwest Deal Moves to Shareholders

Delta moved one step closer to its goal of purchasing Northwest in an all-stock transaction with the approval by the FAA of the plan for combining the two air carriers into a single operating certificate.

Unlike most mergers, where there is one clearly dominant company, this merger will be an all-stock transaction that will preserve some control by Northwest personnel. Under the anticipated plan, Delta CEO Richard Anderson will become chief executive officer of the combined company and serve on the Board of Directors. Northwest CEO Doug Steenland will also serve on the Board of Directors. The Board of Directors will be made up of 7 directors from Delta, 5 from Northwest, and one director from the Air Line Pilots Association (ALPA). Roy Bostock, NWA’s current Board Chairman, will be Vice Chairman of the combined airline.

The deal is expected to be put before the shareholders of both organizations tomorrow, Thursday, September 25.

Even though the merger is being billed as a partnership, PMA holders selling aftermarket parts to Northwest should seriously consider committing resources to engage Delta in discussions about how your company can continue to support the Northwest fleet that would become a part of the ‘new’ Delta Airline. Delta’s PMA guru, Dave Linebaugh will be at the MARPA Conference October 14-16.

Delta’s latest press release on the status of the merger is available online.

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About Jason Dickstein

Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. He represents several aviation trade associations, including the Aviation Suppliers Association, the Aircraft Electronics Association, the Aircraft Fleet Recycling Association and the Modification and Replacement Parts Association.

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