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NWA CEO's letter

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Old 04-14-2008, 06:06 PM
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Default NWA CEO's letter

Today's Announcement: Northwest to Merge with Delta

April 15, 2008

Today Northwest Airlines entered into an agreement to merge with Delta
Air Lines. Subject to regulatory approval, the merger will create a
premier global airline - with more stability and greater opportunities
for our employees, significant benefits for our customers, and enhanced
service to communities.

For our employees, the revenue and cost synergies resulting from the
merger will put the airline in a more financially-secure position and
provide employees of the combined carrier with greater long-term job
security, growth opportunities and an equity stake in the combined
Company's future.

Why merge now? Why with Delta?

As you know, Northwest has been actively reviewing and considering all
strategic options available knowing that, with the high cost of fuel and
uncertain economy, consolidation in our industry was highly likely - if
not inevitable. As further evidence of our industry's volatility, in
the last two weeks, several other air carriers suspended their
operations and are liquidating or filed for Chapter 11 bankruptcy.

Our management team and Board of Directors concluded that our best
option, in this unstable environment, would be to pursue a transaction
with Delta. Therefore, we have negotiated an agreement that is designed
to serve the best long-term interests of Northwest's employees,
customers, shareholders and the communities we serve.

A merger with Delta will protect and strengthen our competitive position
and assets, including our coveted world-class hubs. It will enhance our
SkyTeam alliance and relationship with Air France/KLM, which is so
important to our financial success. It will also give the combined
carrier a more complete end-to-end route network, with little overlap,
that has the ability to compete as a stronger, international carrier.

What happens next?

We anticipate the regulatory review process could take at least 6 to 8
months and be completed by year-end. During this time, Northwest and
Delta will continue to compete with one another and operate as
independent airlines. If the merger is consummated, a transition period
following the closing would be required to integrate the two carriers.

I will continue to lead Northwest Airlines as CEO through the regulatory
review period and the closing of the transaction, and thereafter will
then serve on the merged airline's Board of Directors.

Richard Anderson will be CEO of the combined airline which will be
headquartered in Atlanta. However, Delta intends to retain significant
airline jobs, operations and facilities in Minnesota.

Northwest employees are resilient and among the very best in our
industry.

Collectively, we have managed through an unprecedented string of
challenges -- from the economic recession that preceded 9/11, to the
threatened survival of our entire industry after the terror attacks, to
the difficult period during our restructuring.

The stronger, combined airline will be a more formidable global
competitor and better able to weather the constant challenges in our
industry. As a result, our employees will have the benefit of working in
a more stable environment, with greater job security and opportunities
for growth.

The merged airline will also be better positioned to compete in markets
around the world. That translates into more flights, a best-in-class
fleet of aircraft, and more jobs.

* Employees will directly share in the benefits of the Company
with the opportunity to receive stock in the combined carrier.
* There are no involuntary furloughs of frontline employees or hub
closures expected as a result of this transaction. Jobs will be
available for frontline employees who want to stay with the Company.
* Frontline employees will be provided with seniority protection
through fair and equitable seniority integration in the combined
Company.
* The merged airline will leverage talent from both airlines'
management teams.
* Accrued pension and 401k benefits remain safe and secure.

Today's news will not affect our focus on day-to-day operations. Our
obligation to provide safe, reliable, world-class customer service is
unchanged. Our commitment to make this a best-in-class workplace for
our co-workers remains the same. Until our merger is finalized, we will
continue to focus on our customers, our operation, and making NWA a
great place to work.
As we consider what this merger could mean for our future, I want to
reflect on how this relates to our history-making past. Eighty years
ago, we were the first U.S. airline to operate an international route;
the first to launch regularly scheduled flights to Asia; the first to
fly the Great Circle route; and the first to form a true international
airline alliance. Today's announcement adds another historic entry to
that distinguished list: the first to merge two U.S. network carriers in
the 21st century to create the premier global carrier - one that will
ensure our mutual long-term success.

Clearly, many decisions will need to be made in the weeks and months
ahead as the transition plan is developed. I will keep you apprised as
new developments arise. Please check the intranet/RADAR for updates.
In the meantime, thank you for making our airline among the very best in
the business. I am proud to work with all of you as we lead this airline
forward into the new era.

Yours truly,

Doug Steenland

President & CEO
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Old 04-14-2008, 06:29 PM
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If the merger is consummated, a transition period following the closing would be required to integrate the two carriers.

So basically, it's not official until somebody gets screwed.
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Old 04-14-2008, 06:29 PM
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So "frontline" employees are good to go...what about non frontline, and what does that mean (non frontline), maintenance and ticket agents, or regionals? Im obviously reading into that statement, but still curious what he means by it.
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Old 04-14-2008, 06:33 PM
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As far as I know, NWA doesn't really has that manynon-frontline employees comparing with DL. MX is outsourced to contractors in the last BK, ticket agents are only nwa employees in the major cities, i.e. hub plus a few dozens cities, regionals always have their own employees.
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