Who Wins and Who Loses in Delta-Northwest Merger?

Gadling has been closely following the merger between air travel giants Delta and Northwest Airlines. The marriage of the two carriers was recently approved by the Department of Justice. But what does this mean for the people on the ground and in the air? Aside from seeing new color schemes on the staff and aircraft, there are all those frequent flier miles Northwest patrons have been saving. Jamie recently wrote about what to do with them. Customers stand to pay higher prices when the merger takes hold. Delta will be in a more dominant position than before. That usually means higher prices.

But what about the staff of Northwest Airlines? Here in Minneapolis, strikes by Northwest employees have been commonplace over the past few years. On the positive side, the merger will mean that Delta, which has recently been more stable than Northwest, will be in control. But job cuts are probably coming. Employees may find themselves cut from the company because their position has become redundant. Northwest will most likely see job cuts at their hub in Minneapolis, while Delta's second tier hub in Cincinnati will lose out to Northwest's Detroit base. So the airline's employees will be working for a more stable company, if they can survive the job cuts. Because Delta has the upper hand in the whole process, most watchers expect Northwest workers will bear the brunt of the lay-offs.

[source]

Filed under: Airlines