Back in 2008, 
Delta Air Lines and Northwest Airlines announced that the two carriers would be merging. This headline merger would fundamentally alter the competitive landscape of the commercial aviation industry, as it would create the single largest commercial airline in history. The combined carrier would operate more than 780 aircraft and would have a massive global presence.
While announced in 2008, it took the better part of three years before Delta and Northwest fully merged their brands, leaving us with today’s modern Delta Air Lines by the time 2010 came around. The question that remains, however, is exactly how the airline was going to manage this absolutely massive fleet, one which included several aircraft models Delta had never operated. Let’s take a deeper look at this merger and examine what the biggest benefit Delta got out of it might be.
What Led To This New Merger?
It is important to understand where this merger came from before diving deeper into the specific benefits that Delta Air Lines might have gotten out of it. As early as January 2008, it had been reported that Delta Air Lines and Northwest Airlines were in merger discussions. News reports at the time indicated that the new carrier would use the Delta name and be headquartered in Atlanta. In the buildup to this merger, both carriers faced tremendous financial difficulties.
During the first quarter of 2008 alone, the proposed merger partners lost a combined $10 billion, an amount that exceeded the combined market capitalization of both carriers. You do not have to be a bankruptcy specialist to understand that both carriers were in a dire financial state. As a result, merging emerged as a viable option to reduce costs and increase revenue generation through synergies.
Richard Anderson, the CEO of Northwest Airlines until 2004, was named as the CEO of Delta Air Lines following the merger taking place. He and his team had the very difficult task of integrating these two carriers and finding the best way to deploy their combined fleets to different destinations across the new country.
What Happened In The Wake Of The Merger Announcement?
On April 14, 2008, Delta Air Lines and Northwest Airlines announced that they would be merging to create the world’s largest airline. The Atlanta-based carrier would have an enterprise value exceeding $17 billion, making it one of the most valuable airlines globally. On that day, the company noted that it had agreed with its pilot union to extend the carriers’ collective bargaining agreement until the end of 2012.
This new agreement, which was subject to a vote by Delta pilots, provided the airline with a 3.5% equity stake in the newly created airline, according to The New York Times. On September 26, 2008, it was announced that both Delta and Northwest shareholders had approved the merger, but approval was still needed by federal antitrust regulators in order to finalize the merger. Conventional wisdom would suggest that such a massive merger would reduce competition in the airline industry and harm passengers.
An extensive investigation was conducted, and ultimately, economists concluded that the proposed merger would likely produce efficiencies that are beneficial for US air passengers. This would likely result in lower fares and more efficient flight operations, alongside expanded air service. After all, passengers are not likely to get any new flight opportunities out of two bankrupt airlines.
What Concrete Changes Had To Be Made At Delta Air Lines?
Merging two massive international airlines into one carrier is no easy task, and there were certainly several moves that both airlines had to make to bring their operations together completely. At airports where Northwest and Delta operated out of separate terminals, it was necessary to bring operations all under one roof. Three of the most notable places where this had to happen were Tampa International Airport (TPA), Los Angeles International Airport (LAX), and Orlando International Airport (MCO).
The final major airport to transition operations all under one roof was Philadelphia International Airport (PHL), which did so on January 18, 2010. Northwest’s WorldPerks loyalty program was fully merged into Delta SkyMiles on October 1, 2009.
Before merging with Northwest Airlines, Delta Air Lines operated an exclusive American-made fleet. The new jets from Northwest Airlines included a mix of Boeing, McDonnell Douglas, and Airbus aircraft, with the last being the most noteworthy. Northwest Airlines was the largest global owner and operator of the Airbus A330, a capable intercontinental airliner.
What Was The Biggest Thing That Delta Got Out Of This Merger?
This question is somewhat difficult to answer. The merger between Delta Air Lines and Northwest Airlines fundamentally reshaped the aviation industry, and it created the airline that exists as the market’s leader today. Without a merger with Northwest Airlines, Delta would not have the massive fleet, nationwide presence, and incredibly loyal customer base that it does today. Certainly, major elements of Northwest’s operational legacy are critical elements of Delta’s business and identity as a carrier today.
There are a few ways to evaluate what Delta got out of this merger. The first is the operational capabilities that it received from inheriting legacy Northwest Airlines hubs, with Minneapolis/St. Paul International Airport (MSP) remains today as one of the airline’s most important inland connecting facilities. Through these airports, Delta funnels a massive portion of its passenger traffic today, offering efficient connections to destinations across the United States and the globe.
Furthermore, the airline also gained dynamic new aircraft for its fleet, allowing it to increase service to dozens of new destinations. Many of the jets that fly today for Delta Air Lines were once the backbone of Northwest’s fleet. This aircraft acquisition was one of the most important operational synergies realized by Delta throughout the course of the merger.
Our Answer: The Airbus A330
In the wake of the merger with Northwest Airlines, the Delta Air Lines fleet expanded to include dozens of new Airbus A330 jets, a model which the airline had never operated and likely never would have if this merger had not taken place. Operating Airbus widebody jets was somewhat of a new thing at the time, but these aircraft have more than proven their value for Delta, becoming key elements of the airline’s operational network. Specifics for the airline’s current A330 fleet are available in the table below, as per data made available to Simple Flying from ch-aviation:
|
A330 Variant |
Number in Delta Air Lines fleet |
|---|---|
|
Airbus A330-200: |
11 |
|
Airbus A330-300: |
31 |
|
Airbus A330-900neo |
35 |
The Airbus A330, which fits into a nice mid-capacity widebody slot that also includes models like the Boeing 767, has become a workhorse for the airline on high-yielding transatlantic routes. Multi-day Airbus A330 services to destinations like London Heathrow Airport (LHR) from hubs like John F. Kennedy International Airport (JFK) have become the norm for the carrier.
The aircraft can also operate longer-distance services like JFK to Athens International Airport (ATH). Additionally, the aircraft, which features a premium seating configuration, can be effectively deployed on transcontinental routes within the United States, services where high-volume business travelers are looking for lie-flat comfort.
So What Makes The Airbus A330 So Valuable For Delta?
There are a few different reasons why the Airbus A330 has slowly become one of the most valuable aircraft operated by Delta Air Lines. For starters, we can begin by looking at the capacity that the aircraft offers. The smaller A330-200 has 223 seats, while the larger A330-300 and A330-900neo models offer 281 and 282 seats, respectively. These figures slide into sub-capacity niches within the airline’s mid-capacity lineup that no other model can match.
Furthermore, the Airbus A330’s eight-abreast configuration has long made the aircraft a popular choice. With 2-4-2 seating, there are only two middle seats in each row, and the pairs of seats along the windows have long been favorites for couples traveling together. The sets of four seats in the middle also work well for passengers traveling with children.
Finally, there is concrete proof that the A330s inherited by Delta from Northwest Airlines were extremely valuable. The airline liked the A330 so much that it placed an order for 39 Airbus A330-900neo models, of which 35 have already been delivered to the carrier. Investing in the continued development of its A330 fleet certainly demonstrates the airline’s commitment to the aircraft type, one which it originally received in the wake of the airline’s merger with Northwest Airlines.
