NWA To Be Operated As Delta Subsidiary

Delta Air Lines announced Tuesday to its employees the senior team responsible for leading the company after the closing of its merger with Northwest Airlines. As expected, the new airline will be led by Delta CEO Richard Anderson -- an 18-year industry veteran, and former CEO of Northwest. The team will be comprised of operational, corporate and strategic leaders selected from both companies.

In addition, Delta announced the senior officers who will be members of its Corporate Leadership Team (CLT) which will have overall responsibility for the strategy of the airline, including major decision-making and overall supervision of the merger process.

The CLT, which will be effective upon the closing of the merger, includes:

• Richard Anderson, CEO – Delta Air Lines
• Ed Bastian, President and CFO - Delta Air Lines; CEO and President - NWA
• Mike Becker, EVP, Chief Operating Officer - NWA
• Mike Campbell, EVP - HR, Labor & Communications
• Steve Gorman, EVP - Operations
• Glen Hauenstein, EVP - Revenue & Network
• Ben Hirst, SVP - General Counsel
• Laura Liu, SVP - International
• Theresa Wise, SVP – Chief Information Officer

"We have assembled an incredibly talented officer team," said Anderson (right). "Their diverse backgrounds and extensive experience, both in and out of the airline industry, provide a solid foundation for building a world-class airline focused on taking care of our people, serving our customers, and giving a good return to our shareholders."

Upon closing of the merger, Northwest will be an operating subsidiary of Delta Air Lines. Ed Bastian, who is Delta’s current president and CFO, will also become CEO and president of NWA. Mike Becker, who is currently senior vice president of Human Resources and Labor Relations at Northwest, will become the new executive vice president and chief operating officer of Northwest during the transition period.

As previously announced, Northwest’s current president and CEO, Doug Steenland, will leave to assume his seat on the new Delta Board of Directors. Delta and Northwest announced plans to merger operations on April 14.

"The officers named for both Delta and NWA are leaders of the new Delta," said Bastian, who will have leadership roles in both organizations. "The final organizational structure will evolve over time, as the transition to a single operating certificate is achieved. We will not sacrifice revenue or cost-synergies by moving too quickly to integrate. Combining these two great airlines will be a well-planned, deliberate process."

The new Delta will be headquartered in Atlanta and will maintain a significant long-term presence in Minnesota that includes both operation and staff functions beyond the 12-24 month transition of Northwest operations into Delta.

"We are already making great progress on our integration planning and are well ahead of previously attempted airline mergers in anticipation of gaining approval by the Department of Justice later this year," Bastian added. "Today’s announcement is another important milestone in solidifying the leadership of the new Delta and accelerating the planning efforts that are essential to achieving a seamless integration after the closing of the merger. In light of the industry’s current challenges, including record high oil prices, it is clear we were smart to proceed when we did because this merger will provide the necessary revenue and cost synergies to better position the combined carrier for success over the long-term."

FMI: www.newglobalairline.com, www.delta.com, www.nwa.com