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Thread: Delta and Northwest Agree to Merge

  1. #1
    Moderator Matt Molnar's Avatar
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    Delta and Northwest Agree to Merge

    Delta and Northwest Agree to Combine
    Monday April 14, 8:39 pm ET
    By Harry R. Weber, AP Business Writer
    Delta, Northwest Agree to Combine in Stock-Swap Deal That Would Create World's Biggest Carrier

    ATLANTA (AP) -- Delta Air Lines Inc. and Northwest Airlines Corp., squeezed by record high fuel prices and a slowing economy, are combining in a stock-swap deal that would create the world's biggest carrier. The boards of both companies gave the deal the go-ahead Monday.

    Delta said the combined airline, which will be called Delta, will have an enterprise value of $17.7 billion. It will be based in Atlanta, and Delta CEO Richard Anderson will head the combined company.

    Under the terms of the transaction, Northwest shareholders will receive 1.25 Delta shares for each Northwest share they own. The exchange ratio represents a premium to Northwest shareholders of 16.8 percent based on Monday's closing stock prices. [Full Article]
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    Re: Delta and Northwest Agree to Merge

    WOW... Consolidation at its best. It was bound to happen and I think that there will be much more of this in the future.
    "lol retart"

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    Re: Delta and Northwest Agree to Merge

    God hates me.....
    nwa FOREVER!

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    Senior Member Iberia A340-600's Avatar
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    Re: Delta and Northwest Agree to Merge


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    Re: Delta and Northwest Agree to Merge

    Say bye bye to the DC9's...they will go quicky...probably quite a few of the DL MD-80's as well....gas guzzlers...
    Mark Lawrence - KFLL
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    Re: Delta and Northwest Agree to Merge

    Many things come into mind --
    * what about the 787 orders
    * so long, DC9
    * another DL livery, or they will just keep the most current one
    * will we see A-330s mixing with 763 at JFK?
    * what will happen to all the NW miles?
    * In certain areas, Sky Team will be bigger than Star Alliance.
    * other than Australia, the new airline will server every continent in the world
    Any one care to continue...?

  7. #7
    Senior Member Iberia A340-600's Avatar
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    Re: Delta and Northwest Agree to Merge

    If the A330 was integrated into the JFK international market I'd definitely fly on Delta.

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    Senior Member cancidas's Avatar
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    Re: Delta and Northwest Agree to Merge

    wow. kind of expected this actually, but now that this is official i want to know what's going to happen with AAL, COA, UAL, USA and the rest of the industry. no doubt that someone else will be merging.
    it is mathematically impossible for either hummingbirds, or helicopters to fly. fortunately, neither are aware of this.

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    Re: Delta and Northwest Agree to Merge

    Simply because they agree doesn't mean it will happen. As I said the only ppl to benefit from this will be the shareholders, lawyers, consultants, and the top brass. Sadly this well mean loss of service and lots of jobs being cut.

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    Re: Delta and Northwest Agree to Merge

    This isn't terribly surprising...questions:

    1) How are they going to get the pilots to go along with it?
    2) Are they going to keep all of their hubs?
    3) What's the 747-400 going to look like in Delta colors? :D

  11. #11
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    Re: Delta and Northwest Agree to Merge

    And it's very official

    Dear Stuart Schechter,

    As a valued Northwest Airlines customer and WorldPerks&reg member, I wanted you to be among the first to hear that we have announced a merger 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 like WorldPerks Visa&reg. 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 Asia, Latin America, Europe, Africa and around 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. In addition, building on both airlines' proud, decades-long history of serving small communities, we plan to enhance global connections to small towns and cities across the U.S.

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

    * Offer a true global network where our customers will be able to fly to more destinations, have 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,

    Bob Soukup
    Managing Director, WorldPerks
    "lol retart"

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    Re: Delta and Northwest Agree to Merge


    There will be an unspecified number of job cuts or transfers through the consolidation of overlapping corporate and administrative functions, Delta said. The two airlines employ more than 80,000 people combined. The company expects no involuntary furloughs of front-line employees and said the existing pension plans for both companies’ employees will be protected.

    Delta doesn’t plan to close any of the two airlines’ hubs.

    Delta also said that it has agreed with its pilot leadership to extend its existing collective bargaining agreement through the end of 2012. The agreement, which is subject to pilot ratification, will allow the combined company to realize the revenue synergies of the transaction, Delta said. It also provides the Delta pilots a 3.5 percent equity stake in the new company and other enhancements to their current contract.

    The agreement does not cover Northwest pilots.

    Delta said it will use its best efforts to reach a combined Delta-Northwest pilot agreement, including resolution of pilot seniority integration, prior to the closing of the merger.

    U.S.-based non-pilot employees of both companies will get a 4 percent equity stake in the new airline when the deal closes, Delta said.

    Northwest pilots and the union representing most of Northwest’s ground workers immediately announced they would fight the combination.

    Dave Stevens, chairman of the Northwest branch of the Air Line Pilots Association, said in a prepared statement, “The risk to Northwest Airlines and to the Northwest pilot group from letting this merger proceed, as it is now structured, is simply too great.”

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    Re: Delta and Northwest Agree to Merge

    Tt sure will be sad to see NWA airlines go. However, could this merger ironically be protecting NWA from bankruptcy? I think Delta will integrate the NWA fleet into its own, but it will take some time. As many know, there are still Delta "medium" colors still flying around.
    Also, how does this effect the KLM-NWA partnership?

  14. #14
    Senior Member Delta777LR's Avatar
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    Re: Delta and Northwest Agree to Merge

    I hate to see NWA go, I mean I flew on NWA back in the early ninetys on an A320 and DC-9... Long live NWA... But I would really love to see the Delta colors on the A330 and 747-400s......
    Sergio has been a huge Delta Air Lines fan since 1992!!

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    Senior Member Delta777LR's Avatar
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    Re: Delta and Northwest Agree to Merge

    Check out my drawing I did on the hybird Delta and NWA colors I did back in Feb.. Maybe well see these for a while...

    Sergio has been a huge Delta Air Lines fan since 1992!!

    Sergio Cardona

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