Jump to content

US airlines Delta and Northwest agree to merge

Add links
Unchecked
From Wikinews, the free news source you can write!

Tuesday, April 15, 2008

Delta airplanes at Boston's Logan International Airport

Rival United States airlines Delta Air Lines and Northwest Airlines announced today that they have agreed to merge. The new airline, which will use the Delta name, will be the largest commercial airline in the world.

Technically, Delta will be buying Northwest in a roughly US$3 billion deal. Northwest shareholders will receive 1.25 shares of Delta for each share of Northwest. Based on Monday's closing prices on the New York Stock Exhange this represents a 17% premium for Northwest shareholders.

Richard Anderson, the Delta chief executive officer who will also head the new company, said: "We said we would only enter into a consolidation transaction if it was right for all of our constituencies; Delta and Northwest are a perfect fit. Today, we’re announcing a transaction that is about addition, not subtraction, and combines end-to-end networks that open a world of opportunities for our customers and employees. We believe by partnering with our employees, including providing equity to U.S.-based employees of Delta and Northwest, this combination is off to the right start."

The combined company would have $35 billion in annual revenue and approximately 75,000 employees. The deal does have to receive regulatory approval. "We will look at the competitive effects of the transaction and how it would affect consumers," said Gina Talanoma, a spokesperson for the United States Department of Justice.

Airline industry consultant Robert Mann told Reuters, "It's a very optimistic view on an industry that's been very dismal for the last couple of weeks."


[edit]

Sources

[edit]
Wikipedia
Wikipedia

Share this:  E-mail this story Share on Facebook Share on reddit.com Share on LinkedIn.com Share on twitter.com


This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License

This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License
Retrieved from "https://en.wikinews.org/wiki/US_airlines_Delta_and_Northwest_agree_to_merge"