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Delta and Northwest to combine

2008-04-15 16:34:03 (GMT) (Caymanmama.com - Featured News)



New York

CNN reported that Delta Air Lines and Northwest Airlines will combine after a long-expected deal of about $3.1 billion came to pass on Monday. It is believed that the duo would form the largest airline of the world and will be responsible to lead other series of deals that will reshape the entire airline industry of the US. This new carrier project would be expected to be based in Atlanta and will likely be operated under the name of Delta.

According to Delta, the carrier of both airlines will successfully maintain the nine hubs in the US including Asia and Europe, allocating nearly 390 destinations across 67 countries. This united carrier will have more than 75,000 employees, 800 airplanes and will generate $35 billion revenue annually, as predicted by Delta.

This deal will result in less competition along with higher fares on quite a few routes where the present two isolated carriers are competing. There may increase the probability of little overlap in the systems of the present Delta and Northwest.

It is also expected that the impact on fares and competition could appear in case other foremost carriers pursue similar suit and accordingly negotiate their deals in their own way. Experts suggested that following deals in future will consequently leave this three mega-carriers to handle the most of the air traffic in the nation that is around 80 percent.

This announcement could possibly formulate the way for No.4 Continental airlines to have a hold of its own joint deals. United Airlines UAL Corp. and Continental consider joining together after this Delta deal.



NewsReporter · Filed Under Featured 

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