Shareholders approve merger of Delta, Northwest

Delta Air Lines Inc. and Northwest Airlines Corp. shareholders gave the go-ahead Thursday to a combination that would create the world's biggest carrier, deciding that given the volatile industry, they like their chances better together than on their own.

The stock-swap deal announced April 14 still requires Justice Department approval. One other potential hurdle is a federal lawsuit seeking to block the deal that is set for trial Nov. 5 in San Francisco.

Delta Chief Executive Richard Anderson, who will keep his position after the combination, would not discuss the lawsuit, but he indicated the carrier maintains its goal of completing the deal by the end of the year.

"We are still focused on that timeline and believe we can accomplish the timeline as stated," Anderson told reporters after the Delta shareholder vote.

At a Delta meeting near Atlanta, 99 percent of shares voted were in favor of issuing new stock as part of the transaction. Earlier in the day, at a meeting in New York, 98 percent of Northwest shares voted were in favor of Delta acquiring Northwest.

The deal was not trumpeted by everyone, however. A few retired Delta pilots complained that current employees will get equity when the deal is completed, but retired pilots won't. They suggested Delta consider reinstating the defined benefit pension plan for pilots that the airline terminated while the carrier was under bankruptcy protection.

Anderson said he understood the retired pilots' concerns, but he was firm that the pension termination was final.

"I think we've been clear we're not going to reopen that issue," Anderson said.

Delta has a hub at Salt Lake City International Airport and employs about 3,400 people there.

Paul Tanner, a Delta flight attendant based in Salt Lake City, said the shareholders' votes in favor of the merger were expected. Tanner has participated in a movement among Delta flight attendants to unionize. The most recent election over unionization was in May, but not enough flight attendants participated for it to count.

The first election was in 2001, which was also unsuccessful. Tanner believes that it's more likely for Delta flight attendents to be represented by a union with Northwest flight attendants as their co-workers.

"I look forward to working with Northwest flight attendants, hopefully under a collective bargaining agreement," he said.