AMERICAS: Marriage in the air for Delta and NW

Delta Air Lines and Northwest Airlines have reached an agreement on a merger that would create the world’s largest airline. The $17.7 billion deal announced last month could usher in a new era of consolidation in the industry which after enjoying a brief financial recovery after years of loses following 911, now faces soaring jet […]


Delta Air Lines and Northwest Airlines have reached an agreement on a merger that would create the world’s largest airline.

The $17.7 billion deal announced last month could usher in a new era of consolidation in the industry which after enjoying a brief financial recovery after years of loses following 911, now faces soaring jet fuel prices.

The new airline, which will be called Delta, will be based in Atlanta and will be headed by Delta CEO Richard Anderson. "We said that we would only enter into a consolidation transaction if it was right for all of our constituencies," said Anderson.

"Delta and Northwest are a perfect fi t. Together, we are creating America’s leading airline – an airline that is financially secure, able to invest in our employees and our customers, and built to thrive in an increasingly competitive marketplace."

Delta is currently the nation’s third biggest airline, and Northwest ranks fifth. A combination of the two would surpass American Airlines as the world’s largest carrier.