Delta-Northwest Merger

Delta Air Lines and Northwest Airlines announced plans to merge, creating the world's largest airline. The proposed merger would create a global giant with 810 jets, 6400 daily flights and nearly $32 billion in annual revenue. The carriers estimate the value of the new company at $18 billion dollars, far above their current market value.

The proposal could also be a catalyst for further consolidation among the big airlines at a time when the industry is threatened by steep losses from high fuel prices and a weakening economy (Continental and United ready to merge too).

If the merger closes, the new airline will be named Delta and headquartered in Atlanta where Delta is based; Delta CEO Richard Anderson will be its CEO (translation: it's an acquisition, not a merger). Northwest shareholders would receive 1.25 Delta shares for each Northwest share.