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.