Delta, Northwest shareholders expected to OK merger

— --

Since April, when Atlanta-based Delta and Minneapolis-based Northwest announced plans to merge, two other sets of major carriers have proposed combinations that would amount to virtual mergers across the Atlantic.

In July, United Airlines, Continental Airlines and Germany-based Lufthansa asked the U.S. Department of Transportation for antitrust immunity so they could jointly schedule flights and share revenues across the Atlantic.

Last month, giants American Airlines, London-based British Airways and Spanish airline Iberia applied to the DOT for antitrust immunity so they could jointly schedule flights and share in trans-Atlantic revenues.

All three proposals were announced earlier this year as prices for jet fuel — airlines' biggest expense — were reaching record highs.

Industry experts say federal approval of the trio of proposals would create three behemoths across the Atlantic.

"A fragmented industry no longer works — it's simply not viable," says Washington-based airline consultant Mo Garfinkle. "These combinations will be the foundation of global airlines."

Today, Delta shareholders are voting in Atlanta, and Northwest shareholders are voting in New York; officials at both airlines expect overwhelming support.

The proposal is under intense review by Justice antitrust lawyers to determine whether it would be anti-competitive and harm consumers, but Justice would have to go to court to halt the merger.

If Justice does not block it, the new Delta would become the world's biggest airline, eclipsing Texas-based American. It would also become a stronger force within SkyTeam, the international alliance that includes Air France-KLM, Europe's biggest airline company.

Delta President Ed Bastian says that the airlines don't expect Justice to block the merger, and they expect to close the deal by the end of the year. Wednesday, a Justice Department spokeswoman declined to comment except to say the review is ongoing.