"Former Northwest CEO Becomes Delta Chief"

Tuesday, August 21, 2007

Former Northwest CEO Becomes Delta Chief
Hiring Of Richard Anderson Could Revive Speculation Of Delta-Northwest
Merger
The Associated Press


Delta Air Lines Inc. named former Northwest Airlines Corp. Chief Executive
Richard Anderson as its new leader on Tuesday afternoon. 

Anderson, currently a board member at Delta and an executive at UnitedHealth
Group Inc., will replace Gerald Grinstein as Delta's CEO. Grinstein has said
previously that he would step down once his successor was named. 

Anderson will become CEO effective Sept. 1. With the appointment, Grinstein,
75, will retire from Delta and from its board. 

Grinstein had lobbied Delta's board to tap an insider from the company as
his replacement. The top internal candidates had been Chief Financial
Officer Ed Bastian and Chief Operating Officer James Whitehurst. 

Delta said in a statement that Anderson "brings a unique depth of experience
to the position, having served in top jobs for several major U.S.
corporations." 

The board's chairman, Daniel A. Carp, said Anderson, 52, "possesses the
right blend of seasoned leadership, strategic skills, international
experience and airline knowledge the company needs to navigate the
industry's challenges and capitalize on its opportunities." 

The move could revive speculation in a possible merger between Atlanta-based
Delta and Eagan, Minn.-based Northwest. 

Delta said Tuesday that Bastian will add the title president to his duties.
The company did not say anything about Whitehurst. 

Anderson has worked at UnitedHealth for nearly three years. Before joining
UnitedHealth, he was CEO of Northwest Airlines from 2001-2004. He also
serves as a director of Cargill Inc. and Medtronic Inc., according to
Delta's Web site. 

The change at the top at Delta follows the airline's 19½-month
reorganization under bankruptcy protection. 

Delta entered Chapter 11 on Sept. 14, 2005. The company emerged on April 30.


In bankruptcy, Delta shed billions in costs and restructured the carrier's
operations. It also survived a hostile takeover bid by Tempe, Ariz.-based US
Airways Group Inc. 

Delta executives, faced with questions about a post-bankruptcy valuation
below what they initially projected and below what US Airways offered for
Delta, have declined to speculate about whether the airline would consider a
merger with another carrier to increase shareholder value. 

Besides finding a new CEO, Delta's board also has to decide whether to sell
or spin off regional feeder carrier Comair. The airline has not provided a
specific timetable for that decision.

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