Oct. 29, 2009 (United Press International) -- A massive merger between U.S. airlines Delta (NYSE:DAL) and Northwest has gone smoothly and exceeded Delta's expectations in money saved, the airline said.

"We have hit our original 2009 projection of $500 million in benefits ahead of schedule and now expect to achieve $700 million in merger benefits in 2009," wrote Delta's Chief Financial Officer Hank Halter in a memo sent to employees, The Detroit News reported Thursday.

The companies still find their ground worker and flight crew unions at odds on how to merge contracts, but by and large, "they're doing a lot of things right," said industry expert Terry Trippler at Trippler & Associates Inc.

"With a merger of this size, there's an expectation of surprises, that things are going to go wrong. But for the most part, they're getting it right," he said.

The airlines have been quietly merging on board menus, interior cabins, uniforms -- designed by celebrity designer Richard Tyler -- and plane exteriors.

About 230 Northwest aircraft have been processed in the paint shop to have their tails bedecked with new logos. About 130 now have Delta interiors, the newspaper said.

"We have proven ourselves the industry leader with innovative moves that ... lay the foundation for success when the economy recovers," Halter wrote.