Delta Air Lines and Northwest Airlines announced an agreement in which the two carriers will combine in an all-stock transaction with a combined enterprise value of US$17.7 billion, creating the world's largest airline.
The new airline, which will be called Delta, will combine the carriers' complementary route networks to offer consumers more choices, competitive fares and a superior travel experience to more destinations than any other airline in the world.
Under the terms of the transaction, Northwest shareholders will receive 1.25 Delta shares for each Northwest share they own. The merger is subject to the approval of Delta and Northwest shareholders and regulatory approvals. It is expected that the regulatory review period will be completed later this year.
Until the transaction receives required approvals, there will be no changes to either airline's flight schedule, frequent flyer program, customer service or corporate structure as a result of the transaction.
Delta CEO Richard Anderson will be chief executive officer of the combined company. Delta's president and chief financial officer Ed Bastian will continue in those two roles for the combined company. Doug Steenland, Northwest's CEO, will become a member of the Board of Directors of the new company. Delta will have international executive offices in Amsterdam, Paris and Tokyo, and also executive offices in Atlanta, Minneapolis/St. Paul and New York. The company's world headquarters will be in Atlanta.