Delta Air Lines (OTC:DARLQ) said today in a press release that it plans to emerge from bankruptcy as a standalone carrier. This announcement comes after U.S. Airways proposed $8 billion merger, which would create the world's largest carrier. Under the merger, Delta creditors would get $4 billion in cash and $4 billion in US Airways stock. US Airways believe the such a merger would provide approximately $1.65 billion in annual cost savings. Many are saying that although the merger might make sense, it would involve a lot of work to successfully integrate the two carriers. The complexity of the deal alone may cause it to fail - similar to the way AOL/Timewarner failed. Regardless, this is definitely a situation to watch as management reviews the proposal despite its bias to remain a standalone carrier. The stock moved up 14% on the news so far in today's trading.

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