Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 6:20:39 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

Delta, Northwest Approve Merger

Posted Apr 14, 08 7:17 PM CDT in Business 

(Newser) – Delta and Northwest Airlines execs agreed today to merge their companies into the world's largest airline, the New York Times reports. Delta CEO Richard Anderson will lead the new company, called Delta, if Northwest shareholders approve the transaction. The $3.1 billion deal would give Northwest shareholders 1.25 Delta shares for each outstanding Northwest share, a 17% premium from Monday's closing prices.

If approved, the deal will put seven Delta and five Northwest board members on the new board, alongside one from the Air Line Pilots Association. Northwest board member Roy J. Bostock will act as vice chairman while Northwest CEO Douglas Steenland sits on the board with no influence on daily operations. The deal, sparked by rising fuel prices, was not approved by the companies' 11,000 pilots.

Sources New York Times, Wall Street Journal

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • United Drops US Airways Deal, Woos Continental

    May 30, 08 7:15 AM CDT
    United Drops US Airways Deal, Woos Continental A proposed merger between United Airlines and US Airways is on hold again, the Wall Street Journal reports. United’s CEO told his US Airways counterpart that his airline is close to a deal with Continental, a merger that would be less costly and wouldn’t face as much antitrust scrutiny as a United-US Airways deal, the Journal notes. United’s revelation follows rejection from Continental last month. More »

  • Another United Merger Crashes

    May 28, 08 3:20 AM CDT
    Another United Merger Crashes A proposed merger between United Airlines and rival US Airways has collapsed, just a month after a deal between United and Continental fell apart. Some analysts predicted the rising cost of jet fuel would power merger deals, but the failed negotiations have raised serious questions about the success of future consolidation in the airline industry, reports the New York Times. More »

  • Planes Slowing Down to Save on Fuel Costs

    May 3, 08 12:30 PM CDT
    Planes Slowing Down to Save on Fuel Costs As airlines feel the pain of higher energy prices, planes are slowing down to save fuel, the AP reports. Southwest, for instance, will save $42 million by adding a few minutes to each flight this year, and passengers are unlikely to notice. But it’s no cure-all: Labor costs go up with flight time, and going too slowly actually increases fuel costs. More »

  • Continental Scuttles Merger With United

    Apr 27, 08 5:39 PM CDT
    Continental Scuttles Merger With United Continental Airlines scuttled merger talks with United Airlines today and likely triggered other deals in the plunging industry. United's $357 million first-quarter losses and a plan to lay off 1,000 workers scared away Continental execs, the New York Times reports. Now United parent UAL will likely scramble to cut another deal before fuel prices force it into bankruptcy. More »

  • United and Continental May Be Next to Merge

    Apr 15, 08 4:11 AM CDT
    United and Continental May Be Next to Merge The Delta-Northwest merger will create the world's biggest airline—but that title could fall before the ink is even dry on the deal as industry pressures force other carriers into shotgun weddings, the Houston Chronicle reports. Analysts believe United and Continental would be a good match and a deal between the two is widely expected, possibly in a matter of weeks. More »

A Delta Airlines jet departs Hartsfield Jackson Atlanta International Airport in Atlanta Monday, April 14, 2008.   (AP Photo/John Bazemore)
Northwest Airlines and Delta flights are listed on the monitor at the Minneapolis St. Paul International Airport in Minneapolis, Monday April 14, 2008.   (AP Photo/Andy King)
Northwest Airlines Corp. chief executive officer Doug Steenland speaks at Detroit Metropolitan Airport in Romulus, Mich. in this Oct. 11, 2006 file photo.   (AP Photo/Paul Sancya, file)
A Delta Airlines jet taxis at the Cincinnati/Northern Kentucky International Airport, in a file photo from April 13, 2006, in Hebron, Ky.   (AP Photo/Al Behrman, File)
Delta Airlines Chief Executive Officer Richard Anderson testifies on Capitol Hill in Washington, Thursday, Nov. 15, 2007.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 3)

Tags

merger • United Airlines • fuel costs • Northwest Airlines • Continental Airlines • Delta Airlines


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »