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Delta, Northwest Merger Makes World's Largest Airline


Two U.S. airlines, Delta and Northwest, have agreed to merge, a move that would create the world's largest airline, and might spark a wave of consolidations in the troubled industry.

The combined airline will be called Delta, will put Delta's chief executive officer in charge, and have 75,000 workers. The combined company has 800 planes and $35 billion in revenue.

The plan still needs approval from stockholders and anti-trust regulators, who may be concerned that consolidation will reduce competition in the airline industry.

Several other major airlines, including United and Continental, have been discussing mergers in the hope that larger, more efficient companies can better weather soaring fuel prices and slowing demand.

For passengers, fewer airlines would mean less competition on some routes which could bring higher fares.