Merging of Delta Airlines and Northwest Airlines

Delta Airlines Inc. announced that its shareholders along with the shareholders of Eagan, Minnesota-based Northwest Airlines Corp. approved the merger proposal between the two companies in an all-stock transaction that would create the world's largest carrier, Delta.

The merger plan provides the issuance of 1.25 shares of Delta common stock for each Northwest share to be distributed upon completion of the merger. The merger proposal was approved by more than 99% of Delta stockholders, while 98% of Northwest stockholders voted in favor of the merger.

Delta stockholders were also favorably disposed to its broad-based employee compensation program that will allow the company to distribute equity to U.S.-based employees of the combined company upon completion of the merger. This amendment was ratified by approximately 92% of Delta stockholders.

The combination will provide customers access to more than 390 destinations in 67 countries and is expected to generate more than $35 billion in aggregate annual revenues. The combined carrier would have 800 aircraft and 75 thousand employees, surpassing American Airlines as the largest airline.

The transaction is expected to close later this year subject to the approval of the U.S. Department of Justice. The proposed merger has received unconditional clearance from the European Commission on Aug. 6, 2008.

Commenting on the development, Richard Anderson, Chief Executive Officer, Delta said, "This is another milestone toward completing a merger that brings together two unique airlines with complementary strengths that will offer unmatched global service. Providing both Delta and Northwest employees with the ability to share in the benefits of the merger from the beginning is a prime example of the Delta Difference.''

Shares of DAL are currently trading at $8.15, up $0.14 or 1.74% on a volume of 10.64 million shares on the NYSE.

NWA is currently trading at $9.92, down $0.07 or 0.70%, on a volume of 4.04 million shares on the NYSE.