``We value greatly the professional services provided by Arthur Andersen over the years and appreciate the excellent work provided by their Delta team,'' Delta chairman and chief executive Leo F. Mullin said Thursday.
In January, Delta officials acknowledged they had begun seeking a new auditor after Andersen's reputation was damaged by its role in the Enron debacle.
Chicago-based Andersen earned $5.89 million from Delta for auditing and other services in 2000, according to the airline's 2001 proxy statement. Delta retained the firm in 1949.
Andersen officials did not immediately return calls for comment.
Deloitte & Touche is the U.S. operation of Deloitte Touche Tohmatsu.
The company was one of four firms, including Andersen, who bid for the auditing contract, Delta spokeswoman Catherine Stengel said. She declined to comment on what role the Enron scandal had played in Delta's decision to hire a new auditor.
Andersen will continue to perform some tax and other consulting services for Delta, she said.
The airline is the latest former Arthur Andersen client, joining SunTrust Banks, pharmaceutical giant Merck Inc., and residential mortgage company Freddie Mac, who selected PricewaterhouseCoopers on Wednesday.
PricewaterhouseCoopers did not seek the Delta work. That company already performs some internal auditing and other consulting functions for Delta, Stengel said.
New York-based Deloitte & Touche has experience in the transportation field with auditing work for European carriers Air France and Alitalia and United Parcel Service Inc., Stengel said.
Last month, Deloitte & Touche became the last of the five major accounting companies to announce it would divide its consulting and auditing operations.
Investors have become concerned that auditors' independence can become compromised if their companies also are performing consulting services for clients.
Delta shareholders will vote on Deloitte & Touche's selection at their April 26 shareholders meeting in Washington.
http://accesswdun.com/article/2002/3/197836