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The Justice Department on Wednesday approved a much-anticipated merger between Delta and Northwest, clearing the way for creation of the world’s largest airline.

After a six-month investigation, government lawyers concluded the merger would likely drive down costs for consumers without curbing competition.

The proposed merger “‘is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition,'” the Justice Department said in a statement issued by its Antitrust Division.

source: Associated Press

Delta Air Lines Inc will buy Northwest Airlines Corp for more than $3 billion under a proposal unveiled Monday to create the world’s biggest airline, as carriers seek to counter skyrocketing fuel prices and a weak economy.

After racking up $35 billion in losses and finally emerging from a five-year slump in 2006, U.S. airlines are hoping mergers could lead to higher fares as combined carriers reduce flights and use their increased market power to raise prices.

source: guardian.co.uk

After weeks of wavering, the nation’s airlines have decided their customers will bear more of the brunt of rising jet fuel costs.

Northwest Airlines Corp. and the other major airlines over the weekend raised the fuel surcharge on most routes from $20 to $40 per roundtrip ticket.

It was the third attempt this year to institute such a surcharge. This time, Continental led the way Thursday with an increase to $40, and everyone else followed, including Northwest, Delta Air Lines, US Airways, United Airlines and American Airlines. Northwest spokesman Dean Breest confirmed Monday that the airline raised its surcharge on Friday.

source: detnews.com

A merger between Delta Air Lines (DAL) and Northwest (NWA) or United (UAUA) would greatly extend the reach of the resulting airline, giving it influence over service and fares in more major U.S. business markets than any of them has today.

A Delta-United deal would be an industry game-changer, giving the combined carrier heft in eight of the USA’s 12 biggest business markets, according to a USA TODAY analysis of schedule data from OAGback Aviation Solutions. The analysis combines the current shares of each carrier in the big markets, establishing a rough estimate of the share the combined carrier might control.

None of the airlines has publicly confirmed merger talks, but outsiders last week, including U.S. Rep. James Oberstar, D-Minn., confirmed Delta-Northwest merger talks and the possibility that Delta-United talks could heat up.

source: USA Today

Northwest Airlines is now offering PayPal as a way to pay for tickets at its Web site www.nwa.com. With PayPal, Northwest customers now have a new way to pay for tickets using debit cards, bank accounts, stored balances, or credit cards through their individual PayPal accounts.

Stephanie Tilenius, Vice President of Merchant Services for PayPal, said, “‘We are excited to add Northwest Airlines, one of the world’s largest airlines, as the first airline to accept PayPal. Many of our customers already book travel with Northwest Airlines and are eager to use their PayPal accounts to do so.'”

Northwest Airlines on Friday revealed a new service between Dallas/Fort Worth International Airport and New York’s LaGuardia International Airport beginning Sept. 5, 2007. The company noted that the new service would be operated with Northwest’s modern Airbus A319 aircraft. Northwest is a member of SkyTeam, an airline alliance that offers extensive global networks.

source: tradingmarkets.com

Northwest Airlines will add newer planes to its Hawaii service and add one more flight to Honolulu from Japan beginning this summer.

The airline will introduce newer wide-body A330 aircraft on its Tokyo-Hawaii flights starting July 1. The aircraft reportedly feature redesigned economy class seating and a fully interactive in-flight entertainment system.

source: Pacific Business News

Northwest Airlines Corp. said it plans to begin flying the new Boeing 787 “Dreamliner” in October 2008.The Eagan-based carrier said Thursday that it has reached agreements with Boeing and engine maker Rolls-Royce for the delivery of 18 of the planes over three years.

Financial details were not revealed. The planes list for about $150 million apiece, though airlines typically negotiate lower prices. The airline, which is under Chapter 11 bankruptcy protection, has not yet decided whether to buy or lease the planes.

source: mlive