CMK10 From United States of America, joined Feb 2004, 513 posts, RR: 4 Posted (11 years 6 months 1 week 1 day 23 hours ago) and read 821 times:
What happened to Northeast? I thought they were profitable and then i think it was 1972 i couldn't find anymore pictures of them. Was it a merger?
Also, what was their hub and did the new airline take their hubs and/or planes.
"Traveling light is the only way to fly" - Eric Clapton
Flight Level From , joined Dec 1969, posts, RR: Reply 2, posted (11 years 6 months 1 week 1 day 23 hours ago) and read 813 times:
The first suitor for Northeast in its re-Storered structure, was Northwest Airlines, which first proposed a merger on November 11, 1969. A year later, on December 31, 1970, the CAB approved, but stipulated that this would be conditional on the surrender of the Miami-Los Angeles transcontinental route. Northwest maintained a position of "all or nothing" and withdrew its offer on March 10, 1971.
Eastern Airlines and TWA had also been eager to pick up the Northeast pieces and the former had even gone so far as to offer to buy the Storer Broadcasting Company as well. When the Northwest discussions fell through, the counter-claimants resumed negotiations, and Storer publicly acknowledged that Delta Airlines was the likely favorite. And sure enough, on April 23rd, 1971, the merger was announced.
In May, the boards of both Northeast and Delta agree in principle to merge and filed formal applications to the Civil Aeronautics Board. The sands were running out. Northeast announced a $6 million loss in the first six months of 1971. Such an amount may not seem much today, but it was a formidable figure then.
While Northeast did not seem much of a bargain on paper, the prospects of adding and consolidating an entire market area to an existing nationwide network were attractive in that they would integrate two mutually supportive route networks into one. At least Eastern thought so. In a last-minute statement born of desperation, it submitted, in a brief to the CAB, that Storer Broadcasting would save $4 million in taxes, that it should not be allowed to abandon its certificate responsibilities, nor should it "walk away from the whole misadventure with a profit."
To no avail: on May 19, 1972, President Nixon approved the Northeast-Delta merger - the President's signature was required because foreign routes were involved, and Northeast was absorbed by Delta on August 1, 1972. During the 1960s and 1970s, Delta's name had not been freely circulated during the many rumors and reports about airline mergers. But when it did make its move, it did so firmly and effectively; and the unofficial but nevertheless accepted term (even by the CAB itself) that referred to the "Big Four," fell into disuse. Delta Airlines was now among the leaders of the industry.