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Northwest, Delta discussing merger, report says

January 10, 2007
Northwest Airlines Corp. and Delta Air Lines Inc. have engaged in talks about merging after they emerge from bankruptcy protection, according to The Wall Street Journal.

Northwest is the largest carrier at Indianapolis International Airport, carrying approximately 22 percent of all passengers.

Earlier today, US Airways Inc. said it boosted its offer for Delta to $10.2 billion, after Atlanta-based Delta rejected an initial, $8 billion offer in November.

US Airways’ latest offer expires Feb. 1.
 
US Airways CEO Doug Parker said the sweetened bid is intended to “eliminate any doubt” of a better deal for Delta’s unsecured creditors.
 
A merger of Delta and US Airways, headquartered Tempe, Ariz., would create the second-largest passenger carrier at Indianapolis International Airport, after Northwest Airlines.

Both Delta and US Airways contract with Indianapolis-based Republic Airways Holdings Inc. to provide connecting flights.
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