I have talked to a few people over the course of the past couple weeks that thought a Delta merger was in the works. Don’t you love how company execs will deny the undeniable right up to the last moment. We wouldn’t want to steal their thunder, would we?

Delta Air Lines Inc (DAL.N) has started merger talks with both Northwest Airlines Corp (NWA.N) and United Airlines parent UAL Corp (UAUA.O), and hopes to reach an agreement with one of them over the next two weeks, the Wall Street Journal reported on Tuesday.

The report, citing unnamed people familiar with the situation, said Delta’s board gave Chief Executive Richard Anderson permission last Friday to hold talks with both carriers simultaneously.

Delta aims to present a preferred partner when Delta’s board next meet in early February, with a deal announcement coming as early as mid-February, the paper reported.

I think a deal with Northwest is more likely, given the current conditions, but I also think that the moment a Delta/Northwest deal is announced that United will announce they are in talks with Continental or some other airline. It seems they all think that the only way to compete is to combine.

Comments are closed.