Northwest Merger Talks Reportedly Underway

Northwest Airlines has entered into formal merger discussions with Delta Air Lines and will look for another partner if Delta tries to merge with United Airlines instead, the chairman of the House Transportation and Infrastructure Committee said in a newspaper interview.

U.S. Rep. Jim Oberstar confirmed the talks in an interview with the Star Tribune, saying he met with two Northwest executives Tuesday in his Washington office.

The Minnesota Democrat said Ben Hirst, Northwest’s senior vice president of corporate affairs and administration, and Andrea Fischer Newman, Northwest’s senior vice president of government affairs confirmed that Delta is considering both Northwest and United as options for a merger.

“Northwest sees a benefit to them of a merger with Delta,” Oberstar told the newspaper in an interview posted on its Web site Tuesday.

During the meeting, Oberstar said the executives talked about how a merger would yield cost savings and that the two carriers’ route networks are complementary, with Northwest strong in the Pacific and with Delta with a major presence in the Atlantic.