Delta + Northwest = World's Largest Airline

[george]

Delta + Northwest = world's largest airline

WASHINGTON: -- The much-anticipated $17.7 billion Delta Air Lines Inc. merger with Northwest Airlines is done. The airlines announced jointly at 8 p.m. Eastern Time on April 14 a merger that will keep the headquarters of the new Delta (NYSE: DAL) in Atlanta, will cause no hub closures and will help the carriers weather the pressures of rising fuel costs.

The new airline will have some $35 billion in revenue and about 75,000 employees. It will run a fleet of 800 airplanes that will provide access to more than 390 destinations in 67 countries.

The company expects one-time cash costs of no more than $1 billion to integrate the two airlines. But the deal is expected to generate more than $1 billion in annual revenue and cost cuts from more effective aircraft utilization, a more comprehensive and diversified route system, reduced overhead and improved operations.

Delta CEO Richard Anderson will remain CEO of the new Delta, Delta Chairman of the Board Daniel Carp will become chairman of the new board, Northwest Chairman Roy Bostock will become vice chairman and Delta's Ed Bastian will be president and chief financial officer.

"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," Anderson said. "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. 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."

The new Delta board will have 13 members -- seven from Delta's board, including Anderson, and five from Northwest's board, including Bostock and Doug Steenland, the current Northwest CEO. One director will come from the Air Line Pilots Association (ALPA).

Delta will have executive offices in Atlanta, Minneapolis/St. Paul and New York, and international executive offices in Amsterdam, Paris and Tokyo. The company's world headquarters will be in Atlanta.

The airlines said small U.S. communities will now have better access to more destinations across the globe and will benefit from the combined carriers' complementary route networks. Delta and Northwest believe they have formed a global U.S. carrier that can compete with foreign airlines that are continuing to increase service to the United States.

--AFP 2008-04-15

[ilyushin]

As a valued Northwest Airlines? customer and WorldPerks? member, I wanted you to be among the first to hear that we have announced an agreement to merge with Delta Air Lines. Subject to regulatory review, our two airlines are joining forces to create America ?s premier global airline which, upon closing of the merger, will be called Delta Air Lines.

By combining Northwest and Delta, we are building a stronger, more resilient airline that will be a leader in providing customer service and value. Our combined airline will offer unprecedented access to the world, enabling you to fly to more destinations, have more flight choices and more ways than ever to earn and redeem your WorldPerks miles.

You can be assured that your WorldPerks miles and Elite program status will be unaffected by this merger. In addition, you can continue to earn miles through use of partners. And once the new Delta Air Lines emerges you can look forward to being a part of the world?s largest frequent flyer program with expanded benefits.

The combined Delta Air Lines will serve more U.S. communities and connect to more worldwide destinations than any global airline. Our hubs ? both Delta?s and Northwest?s ? will be retained and enhanced. We will be the only U.S. airline to offer direct service from the United States to all of the world?s major business centers in Japan , Asia, Latin America, Europe, India , Middle East and Africa and within North America .

Both airlines bring tremendous strengths to this new partnership. Our complementary service networks form an end-to-end system that is truly greater than the sum of its parts. This is a merger by addition, not subtraction, which means all of our hubs ? both Northwest?s and Delta?s -will be retained. We will build upon both airlines? long history of connecting Japan and Asia to communities in the U.S. and throughout the world.

All of these positive benefits of our combination mean that we can:

Offer more schedule options and more opportunities to earn and redeem frequent flyer miles in what will become the world?s best and most comprehensive frequent flyer program.

Continue to serve our current roster of destinations and to maintain our hubs in Atlanta , Cincinnati , Detroit , Memphis , Minneapolis/St. Paul, New York , Salt Lake City , Amsterdam and Tokyo.

Improve our customers? travel experience, through new products and services including enhanced self-service tools, better bag-tracking technology, more onboard services, including more meal options, new seats and refurbished cabins.

While we work to secure approval of our merger, which may take up to 6 to 8 months, it will be business as usual at both airlines. We will continue to operate as independent airlines and the people of Northwest will remain focused on providing you with the very best in safe, reliable and convenient air travel. At the same time, both airlines will be planning for a seamless integration of our two airlines, one that delivers to you the enhanced benefits that will earn and retain your preference.

As we work through this process, we will keep you informed at every step along the way. Thank you for your business and we look forward to serving you on your next Northwest flight.

Sincerely,

Todd A. Anderson

Director

Pacific Marketing & Distribution Planning

Northwest Airlines

[think_too_mut]

Two world leaders in losses will now be able to lose even more, as a single entity.

[wxpwzrd]

Do yourself a favor... do not fly US airlines when at all possible. You will almost always get better service from a non US carrier during the international flights. I always fly NWA to Thailand and I am finished with that one. Too many good other airlines to choose from.