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Posted on 04/14/2008 5:12:50 PM PDT by Sub-Driver
Delta to Join Northwest to Form World’s Largest Airline By JEFF BAILEY
The boards of Delta Air Lines and Northwest Airlines announced a deal late Monday that will create the world’s biggest airline and probably trigger other airlines to pursue mergers of their own.
Directors of the two airlines approved the deal in telephone conference calls.
If they approve the deal, shareholders of Northwest would receive 1.25 Delta shares for every Northwest share that they own, a person with direct knowledge of the arrangement said Monday evening.
Seven board members from Delta and five from Northwest would join the board of the new airline, to be known as Delta. The Air Line Pilots Association, which represents pilots at both airlines, would receive a board seat, said this person, who demanded anonymity because they were not authorized to speak for the airlines.
Delta’s chief executive Richard Anderson would run the new airline, with Roy J. Bostock, a Northwest board member who also sits on the board at Morgan Stanley, as vice chairman. Northwest’s chief executive, Douglas Steenland, would have a seat on the board but would not have a role in day-to-day operations.
The two companies have persevered to try and strike an accord — despite their failure to win the complete backing from powerful pilot unions — because rising fuel costs have destroyed the bright financial prospects of the carriers when they emerged from bankruptcy protection a year ago.
Delta and Northwest are betting that cost cuts and the benefits of a bigger route network would outweigh the potential operating chaos and labor unrest that can result from airline mergers.
(Excerpt) Read more at nytimes.com ...
awesome now they can loose twice as much luggage
and overbook twice the amount of flights
yay
This will make a “Trivial Pursuit” question/answer incorrect.
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Good News! About time! Delta is one of the best Airlines - albeit expensive.
I remember when Texas Air was the largest airline in the free world. It didn’t last long.
Bought several hundred shares of Delta in the $10.40 range two weeks ago, it continued to trend lower, picked up more at the $8.40 level ... it went as low as $7.95. Bottom line, my average cost per share is under $10.00 ... interested to see what happens tomorrow with the stock.
Industry consolidation.
Beautiful.
Travelers are just excited at the prospect of increasing fares, more crappy service, more overbookings and more lost luggage.
Jeez... can we go back to the days of mule riding???
Who will AA merge with? Anybody?
There might be a three way deal between AA, CO, and UA. Continental might buy United and sell of some parts of it to American.
So you must be one of those pro-business less competition is a good thing Republicans.
And when Delta fails in the next couple years you will think it is "Good News!" that the Federal Government bails them out.
You must be one of those who doesn’t have a clue about business but any merger is lack of competition dogma Republicans.
When the entire Airline industry is losing money, do you want the Govt. to Nationalize it or not have an Airline industry all together?
They can’t cut costs without cutting out the blubber.
There will always be smaller Airlines who would operate in their niche markets and prosper.
Air Line Pilots Association, the kiss of death! Each airline that has a Pilot of Mechanic representative on the Board of Directors has soon gone into bankruptcy or folded.
Fly them or Fix them, let the managers and directors do their job!!
They lose money due to a bad business model with the knowledge that if they fail that the government will bail them out.
As for your smaller airlines, two have gone under in the last month and Frontier is circling the drain.
Thanks. I remember reading about AA “possibly considering” a merger a while back. Not sure it was in connection with the CO/UA deal. After buying TWA, you would think AA had had enough of this kind of deal.
ATA?
Not even close.
Okay, I found it. It was with CO.
http://www.nj.com/news/index.ssf/2008/02/continental_talking_merger_wit.html
I don’t think that will happen.
No... lol But it might be worth it to buy Aloha’s cargo biz.
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