Atlanta will be home to the world's largest airline if Delta Air Lines and Northwest Airlines consolidate as planned.
Squeezed by rising fuel prices and a slowing economy, the boards of both companies gave the stock-swap deal the go-ahead last night.
Delta says the combined airline will be called Delta. It will have an enterprise value of $17.7 billion. It will be based in Atlanta, and Delta CEO Richard Anderson will head the combined company.
The deal needs regulatory approval. And Northwest pilots and the union representing most of its ground workers immediately announced they will fight it.
Delta Chairman Daniel Carp will become chairman of the new board of directors and Northwest Chairman Roy Bostock will become vice chairman. Delta President and Chief Financial Officer Ed Bastian will keep his titles.
Delta says there will be an unspecified number of job cuts or transfers. The two airlines employ more than 80,000 people combined. The company expects no involuntary furloughs of front-line employees and said the existing pension plans for both companies' employees will be protected.
Delta doesn't plan to close any of the two airlines' hubs.
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Delta & Northwest Expected to Agree on Mega Merger Deal
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Published: April 15, 2008
Published: April 15, 2008
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