US airlines merger largest in world

Delta and Northwest sign $18bn deal to create world's largest airline.

    Delta and Northwest filed for bankruptcy protection
    in 2005 [EPA]

    The new airline, to be called Delta, will be based in Atlanta, and Delta chief executive Richard Anderson will head the combined company.
     
    Volatile industry
     

    The airlines said they decided to merge to create efficiencies that will offset soaring global fuel prices and enable the new carrier to better compete internationally.

     
    "The new airline ... will provide a more stable platform for future growth in the face of significant economic pressures from rising fuel costs and intense competition," they said in Monday's statement.
     
    Huge losses prompted both airlines in 2005 to file for bankruptcy protection.
     
    It is thought the deal will incur job losses but numbers were not specified in Delta's statement. Together the airlines employ 80,000 people.
     

    Many airline experts say mergers should help stabilise the industry, which has only just emerged from a five-year downturn costing $35bn in losses following the September 11, 2001 attacks in the US.

     

    However the ongoing rise in fuel prices and the US economic downturn could prove detrimental to any gains.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    The woman who cleans up after 'lonely deaths' in Japan

    The woman who cleans up after 'lonely deaths' in Japan

    When somebody dies lonely and alone, Miyu Kojima steps in to clean their home and organise the mementos of their life.

    Putin and the 'triumph of Christianity' in Russia

    Putin and the 'triumph of Christianity' in Russia

    The rise of the Orthodox Church in Russia appears unstoppable, write filmmakers Glen Ellis and Viktoryia Kolchyna who went to investigate the close ties between the church and Putin.

    The chill effect: Is India's media running scared?

    The chill effect: Is India's media running scared?

    Much of India's media spurns a scoop about the son of PM Modi's right-hand man. Plus, NFL as platform for race politics.