By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 02/06/08
Negotiations between Delta Air Lines and Northwest Airlines have accelerated and could be headed toward a merger deal next week, people familiar with the talks said.
The companies appear to have worked past a snag hit last month: how Delta Chief Executive Richard Anderson and Minneapolis-based Northwest's CEO, Doug Steenland, would share power, these people said.
Talks moved forward after Northwest's board of directors pressured Steenland, according to one person with knowledge of the talks.
Industry analysts and insiders have presumed that Anderson, who has said he wants the Atlanta airline to be the acquiring company, wants to be CEO. It's unclear what Steenland's role would be.
The two airlines' shares rose Wednesday after reports that they could be closing in on a deal. Delta's stock was up more than 5 percent; Northwest rose nearly 4 percent.
Last week, Delta President Ed Bastian said the carrier is healthy enough and its business plan sound enough to stand alone.
Any potential deal could still fall apart. Bastian said any airline merger would need to overcome challenges related to job security and preserving a presence at both airlines' headquarters cities.
— Staff writer Jim Tharpe contributed to this article.