Delta, Northwest gets FAA Single Operating Certificate, merger draws near

Delta Air Lines Incorporated and Northwest Airlines Corporation, both major airlines based in the United States, have moved closer to merger with the United States Federal Aviation Administration (FAA) accepting plans by the two carriers for a Single Operating Certificate for the combined carrier.

In a joint press release, Delta Air Lines and Northwest Airlines said that the plans submitted by them to the FAA outlined the process the airlines would take over the next 15 to 18 months to combine their daily operations and achieve the Single Operating Certificate.

The Single Operating Certificate will let the two the airlines to combine operations after the close of the proposed merger, which, according to officials of Delta Air Lines, have to be completed by the end of 2008.

The plans submitted by the two carriers to the Federal Aviation Administration – the agency of the United States Department of Transportation with authority to regulate and oversee all aspects of civil aviation in the US – also outline the methodology, processes, tools and timing to maintain the safety of the day-to-day operations.

Delta Air Lines had announced in April 2008 that it would merge with Northwest Airlines in a $17.7 billion, all-stock deal, which would create the world’s largest carrier.

The new company, to be called Delta, will be headquartered in Atlanta.

A statement from Delta Air Lines said that, once the two carriers combine, the new company and its regional partners will provide customers access to over 390 destinations in 67 countries. Delta Air Lines and Northwest Airlines together will have over $35 billion in aggregate annual revenues, operate a mainline fleet of nearly 800 aircraft, employ approximately 75,000 people worldwide, and have one of the strongest balance sheets in the industry.

The proposed merger is subject to the approval of the stockholders of both Delta and Northwest at separate stockholder meetings to be held on September 25, 2008, as well as regulatory approvals which are expected by the end of 2008.

Delta Air Lines, based and headquartered in Atlanta, Georgia, the United States, currently operates an expansive domestic and international network, spanning North America, South America, Europe, Asia, Africa, the Middle East and the Caribbean. It is the only major US-based carrier that flies to Africa. Delta Air Lines operates service to more worldwide destinations than any airline with Delta and Delta Connection flights to 290 destinations in 60 countries.

Northwest Airlines, the principal subsidiary of Northwest Airlines Corporation, is headquartered in Eagan, Minnesota, the United States. It has three major hubs in the United States: Detroit Metropolitan Wayne County Airport, Minneapolis-Saint Paul International Airport, and Memphis International Airport. Northwest Airlines operates flights from a small hub in Asia at Narita International Airport near Tokyo and also operates trans-Atlantic flights in cooperation with partner KLM from Schiphol Airport in Amsterdam. Additionally, it maintains focus-city operations at Indianapolis International Airport, Honolulu International Airport, and Seattle-Tacoma International Airport.

In a press release, John Laughter, senior vice-president (maintenance operations) of Delta Air Lines, remarked of the Single Operating Certificate: “This is a significant milestone in our efforts to bring together our two airlines.”