The combination of Delta and Northwest means changes for Wisconsin -- but not the kind of changes you might expect when large corporations merge.
The new Delta will be the premier U.S. flag carrier that offers travelers more choices and provides employees greater job security. Not only will the hubs of both airlines be retained, we intend to build on both airlines ' proud histories of connecting small and medium-sized communities to the world.
Northwest built its network by flying people in the upper Midwest and the Northwest across the country and around the world. Delta, by contrast, was founded in the South and grew its business by offering flights to other smaller southern destinations.
Both of us, though, know firsthand the economic benefits and travel convenience that our service to small communities provides, and this service will remain a cornerstone of our business.
The new Delta will fly from more than 140 small communities, nearly double the reach of our nearest competitor. All told, the combined airline will serve more than 390 global destinations, providing customers with more flight options. And more options mean fewer connections, shorter waits at the airport and access to new stops around the world.
Northwest understands the importance of air service to the people of Wisconsin. We currently serve eight communities in the state -- Appleton, Eau Claire, Green Bay, La Crosse, Madison, Milwaukee, Rhinelander and Wausau -- and we carry about 3.2 million passengers traveling to and from destinations around the world.
This presence represents approximately $2.3 billion in annual economic benefit to the state. Our merger with Delta will provide Wisconsin travelers greatly improved access to Europe and Latin America as well as many destinations throughout the U.S.
Not only will the combined airline be good for customers and communities in Wisconsin, it also will benefit employees. We have offered employees an equity stake in the new company and will maintain the existing pension plans of our employees and retirees. Most importantly, a stronger airline provides enhanced job security and more career opportunities for the people of Delta and Northwest.
This merger comes at a time of great upheaval in the airline industry. Record fuel prices have caused costs to skyrocket for airlines. Intense competition, particularly from discount carriers and foreign airlines based in Europe, the Middle East and Asia, has compounded the difficulties.
Since 2001, U.S. network carriers have been forced to eliminate more than 150,000 jobs and, combined, have lost more than $29 billion. Already in 2008, six U.S. carriers have sought bankruptcy protection or shut down entirely.
In the face of these challenges, this merger creates a more resilient airline that can deliver on its commitment to customers, employees and small communities in Wisconsin and nationwide.
These stakeholders will benefit from the creation of a strong, U.S.-based airline.
Steenland is president and CEO of Northwest Airlines.