Atlanta, GA (Marketsblog) – In an unprecedented move of its kind, rival carriers Delta Air Lines and Northwest Airlines have consented to a $5 billion merger.
The consolidated firm will indeed create the largest world’s biggest carrier, Delta, and it will carry an annual revenue of $35 billion.
The deal comes amid higher fuel prices and experts in the field say that more airlines may be forced to consolidate.
Both the U.S. and Europe are experienceing a consumer slowdown and that has kept both airlines from spiking prices.
Delta chief Richard Anderson, tapped to the new airline company said, "Merging Delta and Northwest is the most effective way to offset higher fuel prices and improve efficiencies, increase international presence and fund long-term investment in the business," reports BBC News.
Nonetheless, the deal will have to survive opposition from unions that represent ground workers and pilots.