Delta's Merger

These ongoing operational and policy issues are the responsibility of the Board of directors and the CEO. Delta eventually resolved concerns regarding different suppliers of soft drink products by settling on a combination from both major soft drink corporations. Delta needs to review existing policies from both airlines to determine the efficacy and cost-effectiveness of company practices. They are in the unique and fortunate position of having access to all policies in place from a previous competitor, and should use this information to their ultimate advantage, maintaining the most effective practices of each airline while discarding those that are no longer viable. (Wheelen 27-3)
On a positive note, the merger with Northwest did reduce
Overall Delta's merger was considered "a financial success" however, the debt they accrued was US$904 million. To alleviate some of this debt, Delta sold US$500 million in secured bonds for five years, primarily to refinance Northwest's bank loans. Next, Delta sold two owned airlines called Mesaba and Compass Airlines for US$82.5 million in 2010. Despite these efforts, Delta's total debt and leases in 2011 were reported at US$13.8 billion. (Wheelen
The refinery pipelines and transportation assets that are needed to supply fuel in the northern United States are also included in this deal. The potential pitfall with this business venture is that refineries are an unprofitable business. Indeed, this is the reason no new refineries are being built. Delta's management also estimated it would take an additional US$100 million to modify this refinery for processing jet fuel. However, a potential benefit of this deal is that Conoco would still be held liable for any environmental problems that may occur. In addition, if Delta purchased the refinery and employed 402 full-time workers for five years, the State of Pennsylvania would provide a US$30 million in job creation assistance funding. (Wheelen,