After much speculation and anticipation, Delta Airlines has agreed to buy rival, Northwest Airlines.

The deal creates the world's biggest airline in terms of passenger traffic.

Delta is paying $3.1 billion in an all-stock deal.

Delta said the combined airline will have an enterprise value of $17 billion.

It will be based in Atlanta, and Delta CEO Richard Anderson will head the combined company.

The merger comes a year after both airlines emerged from chapter eleven bankruptcy protection.

The two airlines employ more than 80,000 people combined, and expect no involuntary furloughs of employees.

The deal now needs shareholder and anti-trust approval.

The combined carrier will retain the Delta name.