Delta and Northwest Announce Merger

Delta Airlines and Northwest Airlines have agreed to a merger deal believed to be worth more than $17 billion and create the world’s largest carrier.

The two airlines will be called Delta and be based in Atlanta, the current home of Delta Airlines. The deal will still need to gain antitrust approval and survive a certain fight from current Northwest Airlines pilots and administrative workers who could face job losses as a result of the merger but pension plans would be protected.

The hubs of Atlanta-based Delta and Eagan, Minnesota-based Northwest would remain.

According to the deal current Northwest shareholders would receive 1.25 Delta shares for each share they own. Richard Anderson, the current CEO of Delta, will head the new airlines while Daniel Carp will become the chairman of the 13-member board of directors. Northwest Chairman Roy Bostock will become vice chairman.

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