The new airline will be called Delta, and Salt Lake International Airport will be its primary gateway to the West and one of its primary centers of operation.

Delta CEO Richard Anderson will be chief executive officer of the combined company, which will retain all the hubs of both Delta and Northwest, with airlines executives saying in a statement that Salt Lake City will benefit from improved access to international destinations.

"It's fantastic news for Salt Lake. It will open up our markets for international flights," said Salt Lake County Mayor Peter Corroon.

The merged airline will continue to be based in Atlanta, but will have executive offices in Eagan, Minn., where Northwest has its headquarters.

"Delta and Northwest are an excellent strategic fit, with complementary and geographically distinct route systems," Delta President Ed Bastian said in a statement.

"Together, we will have a more robust platform for profitable international growth. Combining both carriers' international land domestic strengths, with our worldwide SkyTeam partners, we are well positioned to lead the industry and deliver value to our shareholders."

The deal, an all-stock transaction with a combined value of $17.7 billion, awaits approval by federal regulators and must overcome employee doubts.

It will create the biggest airline in the world in terms of passenger traffic, while preserving jobs, seniority protection and giving employees equity in the new carrier. The merger announcement said the consolidation would result in an unknown number of job losses among administrative employees but not front-line workers such as flight attendants.

Despite Delta's pledge of no involuntary layoffs, Delta flight attendant and union organizer Paul Tanner said he's worried the merger will prompt executives to outsource jobs to cheaper workers. That worry is based on Northwest's plan in 2005 to outsource some positions filled by senior flight attendants on its coveted international routes.

"That's a red flag in my mind," said Tanner. "It's a big question in this merger."

The deal was reached without a prearranged agreement from the unionized pilots of both airlines about how to integrate their seniority lists, but Delta pilots last week agreed in principle on a contract that would raise their pay and give them an equity stake.

The proposed merger comes against a backdrop of rapidly rising jet fuel prices, which have put all airlines under intense pressure to trim costs, and culminates weeks of discussions that began in January and at one time included talks between Delta and United Airlines.

Analysts have said a union of Delta and Northwest will likely receive antitrust approval from the U.S. Department of Justice because the nonstop routes of each airline have little overlap. The merger will combine Delta's strong East Coast operations centered on Atlanta and New York, and its rapidly expanding European network, with Northwest's strength serving Midwest and Asian markets.

In the midst of it all will be Delta's hub at the Salt Lake airport, which last year was deemed vulnerable in a proposed hostile bid for Delta mounted by US Airways that eventually failed.

"Amen and hallelujah! To have that presence shored up is a good sign for the future," said Scott Beck, CEO of the Salt Lake Convention and Visitors Bureau.

It's unclear exactly how Salt Lakes's airport will fit into the new company's plans to continue expanding internationally. But, perhaps significantly, Salt Lake City International will be the westernmost hub of the new Delta, and some pilots have speculated that a route to Northwest's hub in Tokyo is not out of the question.

"Today, we are announcing a transaction that is about addition, not subtraction, and combines . . . networks that open a world of opportunities for our customers and employees," Anderson said.

The agreement to unite comes almost a year after both airlines emerged from bankruptcy. Delta, the No. 3 airline in traffic, and No. 5 Northwest filed for Chapter 11 reorganization at almost the same moment on Sept. 14, 2005, citing record high fuel prices that were draining the airlines' cash and stiff competition from low-cost carriers that kept them from raising ticket prices to cover costs.

At the time, crude oil prices were under $60 a barrel. On Monday, crude closed at $111.76 a barrel.

If regulators approve the deal, the merged airline will have more than $35 billion in annual revenues, putting it ahead of American Airlines.

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* THE COX NEWS SERVICE contributed to this story

* FREQUENT FLIER POINTS: Details could change, but point balances should remain intact. The merged carrier will want to keep loyal customers, and a frequent-flier program is one of the best tools it has. Delta and Northwest are already partners in an alliance that allows passengers to earn and redeem points in either airline's program.

* FARES: Some analysts say a merger this big will reduce competition and the supply of seats, leading to higher fares. But capacity is already tight, and low-cost carriers such as Southwest and JetBlue remain a factor. In the end, fuel prices - carriers' biggest expense these days - will probably be a bigger factor than mergers.

* RESERVATIONS: All reservations should remain valid on both carriers, which will continue to operate separately until a deal closes. Even then, the two airlines might maintain separate brand names and reservation systems for a time until integration is worked out. Same goes for their respective Web sites, delta.com and nwa.com.

* CHECK-IN AND THE AIRPORT EXPERIENCE: Again, the two carriers will keep their current systems at least in the short run. But eventually the merger partners will have to combine systems, creating potential complications.

* SERVICE QUALITY: How the deal affects airport workers and flight crews - and how skillfully it is executed by management - could affect morale and thus service. The challenge is to meld complex operations and keep workers reasonably happy, while also dealing with smaller issues such as integrating meal and snack menus.

Source: Combined News Services

A year after emerging from bankruptcy, Delta and Northwest strike historic deal to become the world's biggest carrier.

What it means

For SLC passengersThey will have access to the domestic and international destinations of both airlines.

For Delta employees Delta said the agreement protects seniority for workers and offers more job security and an equity stake in the new company.

To Salt Lake City International Airport The airport remains a hub; it will continue to play a key role in the future of the carrier.