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Archive for Friday, September 26, 2008

Shareholders approve Delta-Northwest merger

September 26, 2008

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— Shareholders approved the merger of Delta Air Lines and Northwest Airlines on Thursday, a stock deal that creates the world's biggest carrier.

The merger, overwhelmingly approved by shareholders at both companies, is expected to close by year-end. The U.S. Justice Department still has to give its blessing.

The new company will keep the Delta name, and corporate headquarters will remain in Atlanta. At $35 billion in aggregate revenue, the airline will have almost twice the annual revenue of current leader AMR Corp., parent of American Airlines.

By merging, the companies believe they will be able to better withstand the current headwinds facing the airline industry. Airlines have been offering fewer seats for sale and raising prices to counter higher fuel prices.

If the deal closes, Delta will operate a fleet of 800 U.S. planes and employ 75,000 people worldwide. It plans to give its workers a 13.4 percent equity stake in the combined company as part of the deal.

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