Delta merger talks reportedly turn to holding company

By Charles Edwards

Atlanta, ga – Ever since Delta Air Lines emerged from bankruptcy last year, there's been speculation about the Atlanta company merging with Northwest Airlines.

It may happen as early as Tuesday if both sides create what's called a holding company.

Delta Air Lines is not commenting but reports indicate the air carrier and Northwest are considering forming a holding company. While a merger would blend all parts of the airlines, a holding company allows both airlines to operate independently under a new parent company.

KOLBER: You might say, What's the point in doing that?' It's in order to keep all the union contracts intact.

Merger expert Dan Kolber with the Atlanta branch of the Baker Donelson law firm says the move allows both airlines to act like they're together and postpone thorny pilot seniority talks until there's a resolution. If not, Kolber says the holding company plan could be long term.