mgrahm

On Apr 14, 8:20 pm, "Rog'" <rcblinnNoS...@> wrote:
> Delta, Northwest agree to combine
> By HARRY R. WEBER, AP Business Writer
>
>      Delta Air Lines Inc. and Northwest Airlines Corp., squeezed by record
> high fuel prices and a slowing economy, are combining in a stock-swap deal
> that would create the world's biggest carrier. The boards of both companies
> gave the deal the go-ahead Monday.
>      Delta said the combined airline, which will be called Delta, will have
> an enterprise value of $17.7 billion. It will be based in Atlanta, and Delta
> CEO Richard Anderson will head the combined company.
>      Under the terms of the transaction, Northwest shareholders will receive
> 1.25 Delta shares for each Northwest share they own. The exchange ratio
> represents a premium to Northwest shareholders of 16.8 percent based on
> Monday's closing stock prices.
>      Delta Chairman Daniel Carp will become chairman of the new board of
> directors and Northwest Chairman Roy Bostock will become vice chairman. Delta
> President and Chief Financial Officer Ed Bastian will retain his titles.
>      The new board will be made up of 13 members, seven of whom will come
> from Delta's board, including Anderson, and five of whom will come from
> Northwest's board, including Bostock and Doug Steenland, the current
> Northwest CEO. One director will come from the Air Line Pilots Association,
> the union that represents pilots from both carriers.

It is just shame that the miles I had with DL expired a few months
ago. Combining my NW and DL miles would have given enough a free
ticket some where. Of course like a friend of mine said I would have
to spend a million hours searching for flights that would have
availability for free seats.

On another note I can't see them having all those close together hubs.
Aren't Herbron and Memphis pretty close together. Atlanta also does
not seem to be that far either. Of course I guess DTW and MSP aren't
really that far from each other either.

I can see them keeping ATL, SLC, MSP, and maybe one of the other hubs,
but not all of them. They say they are going keep all of them, but
something tells me that later down the road they may get rid one or
two of them. It would just at Wal Mart and Target merging and not
closing any of their stores despite the fact some across the street
from each other. I guess they are trying to win the vote of employees
who could loss jobs with cuts in service or hubs.

Michael