AMSTERDAM, June 14 (Reuters) - The chief of KLM, part of the Air France (AIRF.PA: Quote, Profile, Research) group, said that a merger between U.S. airlines Northwest Airlines (NWACQ.PK: Quote, Profile, Research) and Delta Air Lines (DALRQ.PK: Quote, Profile, Research) was a "real possibility," Dutch news agency ANP reported on Wednesday.
Leo van Wijk, chief executive of KLM, told reporters in New York that such a merger would produce benefit for Air France-KLM, adding: "It would be easier to deal with one entity."
The U.S. airline industry has been battered by rising fuel costs, weak revenue and low-fare competition, leading some carriers, including Delta and Northwest, into bankruptcy.
In January, U.S. Transportation Secretary Norman Mineta suggested that a merger between Northwest and Delta could result from the latest round of industry restructuring.
Mineta is not the first industry expert to predict consolidation in the ailing airline industry. And analysts have speculated on the possibility of a Delta/Northwest merger.
Leo van Wijk, chief executive of KLM, told reporters in New York that such a merger would produce benefit for Air France-KLM, adding: "It would be easier to deal with one entity."
The U.S. airline industry has been battered by rising fuel costs, weak revenue and low-fare competition, leading some carriers, including Delta and Northwest, into bankruptcy.
In January, U.S. Transportation Secretary Norman Mineta suggested that a merger between Northwest and Delta could result from the latest round of industry restructuring.
Mineta is not the first industry expert to predict consolidation in the ailing airline industry. And analysts have speculated on the possibility of a Delta/Northwest merger.
Hey Leo ask Doug what's gonna happen to the scabs?
