The paper “ Growth of an Organization through Merger or Acquisition” is a valuable example of a business assignment. Delta and Northwest airlines merger is one of the greatest mergers in the airline industry creating the world’ s biggest carrier. The merger which was approximately $3.1 billion is expected to restructure the US airline industry and will use the Delta name in its operations with its headquarters situated in Atlanta. This huge merger between the third-largest Delta and the fifth largest Northwest airlines will help in creating a global giant with more than 700 jets, 6400 daily flights, almost $35 billion revenue yearly, and the new company’ s value of almost $17.7 billion, far above their current market value. The merger will also have approximately 75000 employees globally with no hub closures expected and a 1.25 delta share for each of the Northwest airline's shareholders in addition to the seniority protection of the frontline employees for both airlines via fair and equitable seniority integration.
The merger of the Delta and the Northwest airlines was also facilitated by the fact that they have very few overlapping routes which may interfere with their operations since Delta had most routes in Europe and Latin America while Northwest concentrated its business in Asia (Fedor Web). This major merger in the airline industry will further marry Delta’ s route networks in Europe and Latin America with the Northwest’ s Asia networks and further create more routes thus widening its networks.
This giant merger is expected to initiate significant and plausible efficiencies that will undoubtedly make the US and world’ s customers gain greatly from savings on expenses for airport operations, technology, and suppliers as well as heightening competition in the carrier industry. The merger was aimed at benefiting the two parties involved by making them more efficient in service provision and their respective operations.
The merger was also intended to increase international presence and the ability to fund long-term investments in the airline industry as well as offsetting the higher fuel prices which have fundamentally affected the financial viability of the airline operations.
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