From DELTANET:
Delta, Northwest combine to create America's premier global airline

April 14, 2008

Merger keeps commitments to Delta people
Delta and Northwest Airlines announced an agreement in which the two carriers will combine in an all-stock transaction valued at $17.7 billion, creating America’s premier global airline.
The new airline, called Delta, will be based in Atlanta and provide a combined 75,000 employees greater job security, an equity stake in the combined airline and a more stable platform for future growth in the face of significant economic pressures from rising fuel costs and intense competition. Delta will have executive offices in Atlanta, Minneapolis/St. Paul and New York, and international executive offices in Amsterdam, Paris and Tokyo. There will be no hub closures.


“We have said we would only enter into a consolidation transaction if it was right for all of our constituencies; Delta and Northwest are a perfect fit,” said Richard Anderson. “Today we are announcing a transaction that is about addition, not subtraction, and combines end-to-end networks that open a world of opportunities for our customers and employees. We believe by partnering with our employees, including providing equity to U.S. based employees of Delta and Northwest, this combination is off to the right start. Together, we are creating America’s leading airline – an airline that is financially secure, able to invest in our employees and our customers, and built to thrive in an increasingly competitive marketplace.”


Richard will be CEO of the combined company. Ed Bastian will remain president and chief financial officer. Delta Board Chairman Daniel Carp will become chairman of the new Board of Directors. Northwest Chairman Roy Bostock will become vice chairman. The board will include 13 members, seven of whom will come from the Delta board, including Richard, and five from Northwest’s board, including Roy and Doug Steenland, the current Northwest CEO. The Air Line Pilots Association will also have one seat on the board.


Frontline employees of both airlines will be provided seniority protection through a fair and equitable seniority integration process, as the airlines are combined. U.S.-based nonpilot employees of both companies will be provided a 4 percent equity stake in the new airline upon closing. The company also expects no involuntary furloughs of U.S. frontline employees as a result of this transaction. Employees from both airlines also will enjoy reciprocal pass privileges on both airlines, beginning as soon as possible during the regulatory review process. Delta and its pilots extended its existing collective bargaining agreement through the end of 2012. They will receive 3.5 percent equity stake in the combined company.


The combined airline and its regional partners will provide access to more than 390 destinations in 67 countries. Delta and Northwest together, will have more than $35 billion in aggregate annual revenue and operate a mainline fleet of nearly 800 aircraft.


“We are pleased that the people of Delta and Northwest will participate directly in the growth and future success of the combined company,” Richard said. “Thanks to the hard work and professionalism of the more than 75,000 Delta and Northwest employees over the last few years, our new, combined company will be positioned for a bright future as a leader in the global airline industry.”