It's official: Delta and Northwest to merge
According to a report by CNN tonight, Delta has announced it's long rumored merger with Northwest has been approved by both airlines. This merger was supposed to happen months ago, but the airlines were holding out on an announcement until the pilot groups at each company could come to a seniority agreement. The pilots, both represented by the Air Line Pilots Association, were unable to negotiate a mutually agreeable seniority list. The airlines were trying to avoid the acrimonious situation that currently exists between the USAirways and former America West pilots that is threatening the combined airline.The Delta name and Atlanta headquarters will be kept, and Delta will become the world's largest airline, a position held previously by American Airlines. Delta is hoping that a quick resolution to their pilot contract, which would eventually apply to both pilot groups, might make the merger a success.
Northwest Airlines hold a 'golden share' in Continental Airlines which has prevented Continental from seeking their own merger. Any deal involving Northwest would allow Continental to be freed from any veto power that Northwest has. Look for a possible Continental and United announcement shortly.
Update: Delta and Northwest have already launched a site with details of their plan for world domination.
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Reader Comments (Page 1 of 1)
Apr 15th 2008 @ 1:34AM
Gargamello said...
These mergers basically suck for travelers because you know the decreased competition means higher fares. It'd be alright if they bought new, more comfortable planes with the "synergies" but you know that's unlikely. Bleh.
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Apr 15th 2008 @ 2:51AM
Neil said...
It will be interesting to see how this goes. For Delta, they gain a more extensive route network in Asia.
What do you think will happen to the combined NWA/DL fleet? I wonder if it will be streamlined?
The main differences I see are:
NWA- DC9, A320, A330, B747
DL- MD88/90, B737, B767, B777
Really, the only aircraft they have in common is the 757.
Thanks
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Apr 15th 2008 @ 10:55AM
Neil said...
Woops, forgot that 767 should really be on the common type list, although NWA doesn't actually have any, just 757 commonality.
Apr 15th 2008 @ 7:10AM
Stijn said...
Dang, I hope my LHR-SEA fare won't rise.
The thing is it's so cheap because it's a new trip starting June 1st, so I think everyone is quite infamiliar with it.
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Apr 15th 2008 @ 8:21AM
Thanh T. said...
Very interesting article on Delta's and Northwest's Airline recent business merger…
I think Board members from both companies made an smart-good business decision. (Hopefully, everything will work out for the airline industry, employees, vendors and travelers...)
I also agree, today's travelers will not be happy with increase ticket(s) prices. Perhaps, the increases are necessary for a short period until fuel prices level off...
I think some of the company’s fleet will be sold in the private sector (feasible-suitable option)-it will be interesting to see what will happen next. I think most commercial flights today in North America have less than 100 passengers per plane/flight...(please correct me if I'm misinformed.)
I believe the bigger aircrafts will be reserved for select long range-international flights...(fuel cost/carriers can not fill all seats...) This summer's travel season will be interesting to study.
Hmmm, very interesting article...
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Apr 22nd 2008 @ 10:26PM
jan neuman said...
consumers will loose on this one, especially if you have to utilize a hub carrier. Our fares area already out of sight, in this area with few specials. To drive to a major hub is prohibitive as it is 6 to 8 hours. Our fares are close to what it costs to fly to Europe in some instances. Rural areas that built some of these companies with federal funding years back are now pricing travelers out of the market.
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