Says Joining Poses Few Threats To Competition

Delta Air Lines has knocked off one more checklist item in its preparations to acquire Northwest Airlines.

The Wall Street Journal reports antitrust regulators in the European Union signed off on the deal Wednesday, saying the merger offers few threats to competition within the 27-member bloc, or on trans-Atlantic routes.

The European Commission noted both airlines are already members of SkyTeam, one of three major international airline alliances, and their routes and schedules across the Atlantic "...are mainly complementary, as they have hubs in different US cities."

Delta currently serves twice as many EU cities as Northwest does. Delta has hubs in Atlanta, New York, Cincinnati and Salt Lake City, while Northwest's are located in Minneapolis, Detroit, Memphis and Tokyo.

The all-stock acquisition still faces a few hurdles. Both airlines' stockholders will be asked to approve the deal next month. The US Department of Justice made a second request for information, and is sifting through the thousands of documents it received as a result. Most airline industry and antitrust experts expect eventual DOJ approval, though.

Delta CEO Richard Anderson issued a statement Wednesday, saying the airlines, "...remain confident that we will be able to finalize the merger by the end of the year."

FMI: http://ec.europa.eu/index_en.htm, www.newglobalairline.com