The U.S. Justice Department today officially approved the merger between Delta Air Lines and Northwest Airlines, marking the last hurdle in the tie-up that forms the world's largest airline.
DOJ's Antitrust Division said the deal had undergone "a thorough, six-month investigation" that included discussions with corporate customers, other carriers and travel agencies. DOJ concluded, "that the proposed merger between Delta and Northwest is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition."
DOJ in its approval noted robust competition between the carriers and other legacy and low-cost carriers in the United States and abroad. DOJ added that the merger likely would result in "efficiencies such as cost savings in airport operations, information technology, supply chain economics and fleet optimization that will benefit consumers."
Delta and Northwest announced the merger agreement in April
(BTNonline, April 15), and consistently made strides toward its completion. Delta last month said 99 percent of the votes cast by its stockholders and 98 percent of Northwest's stockholder votes favored the transaction. The carriers in recent months have moved the transaction forward in other ways, gaining "unconditional clearance" from the European Commission in early August, and gaining the U.S. Federal Aviation Administration's blessing for a single operating certificate.