Stockholders Approve Delta & Northwest Airlines Merger!

September 26, 2008 by Greg Saunders

Well Peachtree City Residents, it happened yesterday, September 25th. The news broke back in April and now Delta and Northwest Stockholders have overwhelmingly approved the proposal for the merger of Delta Air Lines and Northwest Airlines. Here are the facts. Delta stockholders approved the issuance of 1.25 shares of Delta common stock for each outstanding share of Northwest stock to be distributed upon closing of the merger, expected sometime later this year. The proposal was approved by approximately 99 percent of the votes cast by Delta stockholders. Also, more than 98 percent of the votes cast by Northwest stockholders were in favor of the merger.

Also approved was an amendment to Delta’s employee compensation program that will allow the company to distribute equity to U.S.-based employees of the combined company shortly after the merger is completed. The amendment was approved by approximately 92 percent of Delta’s voting shares.

This was a big deal for Delta employees since Peachtree City is the home to a good number of Delta’s crew. The compensation plan recognizes the importance of Delta employees and attempts to distribute equity to them. And why not? After several pay cuts, layoffs, and long hours, the commitment to Delta employees was long-coming and needed to restore Delta’s customer service appeal. Delta promised that combining with Northwest would create a premier global airline that will be unmatched in the scope and level of services it offers customers.

The new company will be still be called Delta and will be headquartered in Atlanta. The combined company and its regional partners will provide customers access to more than 390 destinations in 67 countries. Together, Delta and Northwest will have more than $35 billion in aggregate annual revenues, operate a mainline fleet of nearly 800 aircraft, employ approximately 75,000 people worldwide, and have one of the strongest balance sheets in the industry.

This is only one more step to this merger folks as it is subject to the approval of the U.S. Department of Justice, which is expected by the end of the year. If you remember back in August, Delta and Northwest received unconditional clearance from the European Commission on the airlines’ proposed merger.