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August 30, 2008 8:30:50 AM CDT

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Delta Merger Rumors Take Off

Posted Jan 11, 08 8:00 AM CST in Business 

(Newser) – Airline merger talks are in the air, with Delta Air Lines executives expected to get the go-ahead from their board today to court Northwest or United. Delta’s matchmaking efforts began with exploratory talks in December, the Wall Street Journal reports. The news prompted airline stocks to soar—Delta was up 18%, Northwest rose 32% and United parent UAL jumped 24%.

Carriers want to act under the Bush administration, which they see as less restrictive on antitrust issues than a possible Democratic replacement in 2009. Consolidation would reduce competition and likely increase fares, but it would also would trim excess capacity, labor and administration costs—and help contain fuel costs. If Delta can find a partner, Continental may be the next to seek a deal.

Source Wall Street Journal

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A traveler passes a Delta Airlines sign as she makes her way through Hartsfield Jackson Atlanta International Airport in Atlanta in this Feb. 14, 2007 file photo.   (Associated Press)
A pilot in a Delta Airlines jet sits in the cockpit after parking at Sea-Tac International Airport in Seattle in this June 2, 2005 file photo.   (Associated Press)
A Delta Air Lines jet takes off at Hartsfield Jackson Atlanta International Airport in Atlanta in this March 3, 2006. (AP Photo/Ric Feld. File)   (Associated Press)
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