Merger taking flight

Delta Air Lines Inc. on Wednesday sealed a deal to acquire Northwest Airlines Corp. — which locally could result in increased union representation for workers, as well as fare hikes for passengers.

The U.S. Justice Department on Wednesday said it had concluded a six-month investigation of potential antitrust violations and concluded it would not object to the deal.

"The proposed merger between Delta and Northwest is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition," the department said.

Those efficiencies will likely include cost savings in airport operations, information technology, supply chains and fleets, the department said.

Meanwhile, Delta and Northwest customers who had sued to block the companies' merger plan, claiming it would drive up airfares, settled their case Wednesday. Joseph Alioto, an attorney representing 28 air travelers who had sued to block the deal, declined to release terms of the settlement, which he said was worked out on Friday and finalized over the last few days. The case had been filed in June in federal court in San Francisco.

Delta, the third-biggest U.S. airline by traffic, and No. 6 Northwest will take the top global spot as the largest carrier, a position previously held by Air France-KLM. Delta chief executive officer Richard Anderson will run the new carrier, which will keep Delta's name and Atlanta headquarters.

Delta agreed to buy Northwest, based in Eagan, Minn., in April in an all-stock deal, and their shareholders endorsed the plan in September. The new Delta will have $35 billion in annual sales and 75,000 employees, and deliver $2 billion in new revenue and cost savings, the airlines have said.

"The new Delta will be at the front of the pack in achieving the benefits of consolidation and is well positioned to navigate the tough waters ahead in a difficult economy," Anderson said in a statement Wednesday.

The transaction was valued at $2.63 billion, based on Wednesday's closing stock prices. It was valued at $3.45 billion at the end of the day on April 14, when it was announced.

Delta shares fell 17 cents to close Wednesday at $7.99. During the past year, the price has ranged from $4 to $21.10. Northwest rose 13 cents to close at $9.90. During the past year, the price has ranged from $4.68 to $21.