US Delta Air Lines and Northwest Airlines, squeezed by record high fuel prices and a slowing economy, are to combine in a stock-swap deal that would create the world's biggest carrier.

The boards of both companies gave the deal the go-ahead on Monday.

Delta said the combined airline, which would be called Delta, would have an enterprise value of over 17 billion US dollars.
It would be based in Atlanta and Delta chief executive officer Richard Anderson would head the combined company.

Anderson made a statement in a videotaped released by the company.

"Joining Delta and Northwest will create a strong, durable airline. It will provide a strong capital base, improved customer service, stable jobs and returns for share-holders."

The two airlines employ more than 80-thousand people combined.

Delta said there would be an unspecified number of job cuts or transfers through the consolidation of overlapping corporate and administrative functions.