US Airways announced today that it has made an $8 billion bid for Delta Airlines in a move which, if successful, would create one of the world largest airlines.

Under the terms of the proposed merger, the new airline would operate under the Delta name. According to US Airways, the “new” Delta would become the number-one airline for trans-Atlantic travel, the second largest airline servicing the Caribbean, and the number-one airline at 155 airports. It would reach more than 350 destinations on five continents.

The merger will also result in a 10 percent reduction in the two airlines’ capacity, while “reducing unprofitable flying and improving the mix of traffic,” US Airways said in the statement announcing the merger bid.

"Even with a 10 percent reduction in capacity,” said US Airways Chairman and Chief Executive Officer Doug Parker in the statement, “all existing U.S. destinations served today by Airways and Delta will remain part of the new, improved network. Consumers will have the advantages of a larger full-service airline with the cost structure of a low-fare carrier, and the communities we serve, as well as those Delta serves, will have access to a wider range of network options. More than ever, the New Delta will be able to connect our customers to the people and places they want to visit.”

US Airways itself is the creation of a merger between US Airways and America West in 2005. The deal proposed today, Parker said, will create an airline that will “be a more effective and profitable competitor in the current fragmented marketplace, with the ability to better meet the continuing evolution of the airline industry.”