Air Transport World

Delta-Northwest could jumpstart consolidation.(News Briefs)(Delta Air Lines Inc. and Northwest Airlines Corp.)

FINANCIAL RESULTS, NEW DEALS, AND REPORTS fROM EVERY CORNER Of THE GLOBE

US airline consolidation is back on the front burner now that Delta Air Lines has agreed to merge with Northwest Airlines in an all-stock transaction in which NWA shareholders will receive 1.25 shares of Delta stock for each NWA share they own. The deal values NWA at nearly $3 billion while the carriers said the merger has a "combined enterprise value of $17.7 billion."

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Assuming the merger is approved by DL and NWA shareholders and passes muster with the US Dept. of Justice, the new airline will retain the Delta name and be based in Atlanta. DL CEO Richard Anderson would be CEO of the combined entity. …

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