Atlanta-based Delta Air Lines announced Monday that it will acquire Minneapolis-based Northwest Airlines in a deal that will create the world's largest airline. The combined company will retain the Delta name and be headquartered in Atlanta.
In a statement on its website, Delta says the airline will maintain its nine existing hubs in the United States, Europe and Asia. The deal is expected to result in a number of administrative job losses, but few are expected among frontline employees such as flight attendants, pilots or mechanics.
Consumers could see higher fares with reduced competition on some routes. However, relatively little overlap exists between the current Northwest and Delta route systems.
Frequent fliers can expect to retain their earned mileage points since both airlines' reward programs are already integrated through the SkyTeam network.
Delta CEO Richard Anderson cited record oil prices, a weakening economy and increasingly competitive marketplace as reasons for the move. He expects the new airline will achieve greater financial stability and job security for its employees.
Anderson will remain CEO of the new, combined airline. Northwest CEO Doug Steenland will take a position on the airline's board of directors.
