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Delta-Northwest merger

Delta Airlines Inc will buy Northwest Airlines Corp for more than $3 billion under a proposal unveiled Monday to create the worldâℬ™s biggest airline as carriers seek to counter skyrocketing fuel prices and a weak economy.


It is feared that mergers will lead to higher fares as combined carriers reduce flights and use their increased market power to raise prices. If approved, the new carrier would leave six major airlines, including low-cost power Southwest Airlines competing for the US market share.


The new airline will be led by Delta chief executive Richard Anderson, and will be headquartered in Atlanta. It will operate under Deltaâℬ™s flag with over $35 billion in annual revenue and about 75,000 employees.


Source: Gulf News

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