Buzz on Delta’s Megabuck Merger Picks Up Steam

Delta’s board met January 11 and reportedly considered a proposal from CEO Richard Anderson to let him begin discussions with United and Northwest about a potential merger with one of the carriers.

Last year, Delta’s board established a special committee to work with management to review and analyze strategic options “to ensure Delta maintains its leadership position in the airline industry, including potential consolidation transactions.”

The company had also retained financial and legal advisors to assist in the review and in the development of recommendations to Delta’s board.

This newest round of merger speculation began in earnest January 9 when the chairman of the Delta Master Executive Council of the Air Line Pilots Association sent a letter to union members in which he told them the union had to prepare for the possibility.

Chairman Lee Moak cited increasing economic pressure on the carriers, which are expected to report “disappointing” fourth quarter earnings as a result of higher fuel prices and slackening demand.