planespotting From United States of America, joined Apr 2004, 3492 posts, RR: 5 Reply 10, posted (3 years 8 months 1 week 3 days 10 hours ago) and read 8130 times:
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Republic Airways to purchase Delta; become world's largest airline
In a surprise move, Indianapolis-based Republic Airlines today announced its intention to purchase Delta Airlines for $16/share, or $12.6 billion dollars. "We feel that the time is right to continue our aggressive expansion," said Republic CEO Bryan Bedford at a press conference from Indianapolis International Airport this morning. "With God on our side, this merger couldn't come at a better time."
The merger would incorporate five current and former airlines - Delta, Northwest, Frontier, Midwest and Republic - into one, which, according to Bedford, would be known as Denfromblic Airlines. Denfromblic would have approximately 850 airplanes, more than 150,000 employees and eight hubs in the United States alone, along with Tokyo and Amsterdam outside of the United States. According to Bedford, Republic's motivation for the merger include "tremendous synergies between our operations, alignment on many different routes and a great opportunity to reduce costs, especially at Delta."
During the first few weeks after the merger, Denfromblic's flight crew will see a 40 percent decrease in pay, including a 25 percent decrease in per Diem. By the end of the year, all of Denfromblic's airplanes will be without ACARS, a cockpit-to-ground communication tool, and any in flight entertainment. Wall Street responded positively to the deal, and Delta shares shot up to $15.58 in pre-market trading. Republic's stock stayed flat at $5.80.