This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Northwest May Be Best for Delta

CHARLOTTE, N.C. -- If Delta (DAL - Get Report) wants to merge with someone, Northwest (NWA) may be the most viable candidate.

On Wednesday, a hedge fund called for a merger between Delta and UAL's (UAUA) United Airlines, and the Associated Press reported that the two carriers have discussed a deal that would put the combined company's headquarters in Chicago. Delta denied holding any talks.

In any case, "Northwest makes more sense," analyst Michael Derchin of FTN Midwest Securities said Thursday in a report. Additionally, a source said, past internal Delta studies have concluded that Continental (CAL) and Northwest are good merger candidates, while United is not.

Those studies indicated that a pact between United and Delta, the nation's second- and third-largest airlines, would be unlikely to gain approval from antitrust regulators. Meanwhile, Northwest has the ability to limit Continental's maneuverability because it owns a stake in its fellow carrier and could block an acquisition.

Derchin wrote in his report that Northwest's Pacific routes are the primary lure. "It will take Delta 15 years to build an Asia/Pacific operation that is comparable to their current Atlantic and Latin American operations," he said. "A merger would get them there in one year."

While United also has a strong Pacific operation, Derchin listed several reasons why Northwest is the preferred partner. A key is that integration of the carriers' international alliances would be smoother, namely one with Air France KLM (AKH). That company has formed a joint venture with Delta, and the KLM division has a business venture with Northwest.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LCC $0.00 0.00%
DAL $44.52 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs