World's largest airline: Delta, Northwest boards approve merger
The boards of Delta & Northwest have approved merger deal that would create the world's largest airline. In pics: Delta, Northwest merger | Dreamliner in pics
By Agencies |
WASHINGTON: The boards of Delta Air Lines and Northwest Airlines have approved a merger deal that would create the world's largest airline by traffic, Delta said in a statement.
Delta will head the combined airline, "creating America's premier global airline" if the $17.7 billion deal passes regulatory approval, the company said in a statement yesterday.
The deal was announced as skyrocketing fuel costs, a suffering economy and increasing dissatisfaction among travelers have put a chokehold on the airline industry. Both Delta and Northwest emerged from Chapter 11 bankruptcy last year.
Delta will head the combined airline, "creating America's premier global airline" if the $17.7 billion deal passes regulatory approval, the company said in a statement yesterday.
The deal was announced as skyrocketing fuel costs, a suffering economy and increasing dissatisfaction among travelers have put a chokehold on the airline industry. Both Delta and Northwest emerged from Chapter 11 bankruptcy last year.
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Delta said the new airline would "provide employees with greater job security, an equity stake in the combined airline, and a more stable platform for future growth in the face of significant economic pressures from rising fuel costs and intense competition."
The terms of the deal call for Northwest shareholders to receive 1.25 Delta shares for each Northwest share they own.
The transaction was forecast to generate more than $1 billion in annual revenue, with one-time cash costs for integrating the two airlines also set at $1 billion.
The merger must be approved by shareholders of both companies and is subject to antitrust review, a process which is expected to be completed later this year, Delta said.
The merger would increase international and domestic reach without reducing the number of hubs, serving "140 small communities in the United States - more than any other airline," the company said.
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