NWA/DELTA OFFICIAL MERGER


#1

biz.yahoo.com/pz/080414/140089.html

They say all hubs will be kept…Lots of questions:
Do hubs get closed eventaully?
Does UA/CO merge?
Does this merger get through?
Do fares go up?


#2

newglobalairline.com/

a website talks about the merger
Dear Northwest Customer:

As a valued customer, I wanted you to be among the first to hear that we have announced an agreement to merge with Delta Air Lines. Subject to regulatory review, our two airlines are joining forces to create America’s premier global airline which will be called Delta Air Lines.

By combining Northwest and Delta, we are building a stronger, more resilient airline that will be a leader in providing customer service and value. The combined airline will offer unprecedented access to the world, enabling you to fly to more destinations and have more flight choices.

You can be assured that your WorldPerks miles and Elite program status will be unaffected by this news. In addition, you can continue to earn miles with confidence on Northwest and all of our mileage partners.

The combined Delta Air Lines will serve more U.S. communities and connect to more worldwide destinations than any global airline. We will be the only U.S. airline to offer direct service from the United States to all of the world’s major business centers in Asia, Latin America, Europe, Africa, and around North America.

Both airlines bring tremendous strengths to this new partnership. Our complementary service networks form an end-to-end system that is truly greater than the sum of its parts. This is a merger by addition, not subtraction, which means all of our hubs - both Delta’s and Northwest’s - will be retained. In addition, building on both airlines’ proud, decades-long history of serving small communities, we plan to enhance global connections to small towns and cities across the U.S.

All of these positive benefits of our combination mean that we can:

  • Offer a true global network where our customers will be able to fly to more destinations, have more schedule options and more opportunities to earn and redeem frequent flyer miles in what will become the world’s largest frequent flyer program.
  • Continue to serve our current roster of destinations and to maintain our hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York, Salt Lake City, Amsterdam and Tokyo.
  • Improve the customers’ travel experience through new products and services including enhanced self-service tools, better bag-tracking technology, more onboard meal options, new seats and refurbished cabins

While we work to secure approval of our merger, which is expected to take 6 to 8 months, it will be business-as-usual at both airlines. We will continue to operate as independent airlines and the people of Northwest will remain focused on providing you with the very best in safe, reliable and convenient air travel. At the same time, both airlines will be planning for a seamless integration of our two airlines, one that delivers to you the enhanced benefits that will earn - and retain - your preference.

As we work through this process, we will keep you informed at every step along the way. Thank you for your business and we look forward to serving you on your next Northwest flight.

Sincerely,
Doug Steenland
President and CEO
Northwest Airlines


#3

It’s always nice when I am the only one talking on this thread. From the Post Delta Nwa livery thread, My response:

[quote=“wazzu90”]

I disagree. There are many benefits to a merger. If a city has 3 flights to Detroit (on NWA) and 3 to Cincinatti (DL)on crj-200’s, they can operate maybe 3 or 4 100 seat planes to Detroit…a lot more economical then 6 flights on crj-200’s. I have no doubt that hubs will be closed. There will be layoffs and fares will go up. But I don’t think a lot of you realize that many airlines are just holding on by strands. The consumer and many employees will get screwed but I would rather see higher fares and a stonger airline with some layoffs then half the airlines collapsing, and even more layoffs. Yes, shareholders and management may see the most benefit but there is also a lot of benefit to everyone. This airline will be able to mainstream the airline, create more monopolies, and over all become stronger.


#4

Management: Yes, upper management will thrive with a merger. Not the lower level managers and definitely not the employees.

Shareholders: They will lose because the airline’s stock price will more than likely go down.

Monopolies: These are just plain and simple not good for the consumer. Look at the cable industry prior to satellite TV. Prices, for what you got, where higher because in most cases the cable provider was a monopoly.

You get a monopoly by an airline between two cities and, in most (not all) cases the fares will go up.

Overall, I think the consumer loses in higher prices and less frequent service.


#5

I know monopolies aern’t good for the consumer but from the industry standpoint, Prices MUST go up. They can’t keep charging the fares they are charging. I myself don’t want fares to go up but realize and accept that they have to. With less carriers (either mergers or deaths?), prices will go up. Survival of the fittest.

I do see shareholders getting a temporary boost in stock prices before 90% of them rush out of the airline industry for good. Lots of these guys would be happy to break even considering the loses they have.

Yes, Steeland and Anderson may see 7 (or God forbid) 8 figure bonuses.


#6

I can remember back in '04 or so, when I was at ATA, sweating the $50/barrel oil, that airline mergers were on the horizon. As bad as it seemed back then with penny pinching etc because of fuel, I am surprised it took this long. I’d imagine if you dug through the airliners.net boards you’d see the rumors that were going around.

I think in ways yes this may make the rich get richer, but I think it’s time for higher fares and less competition. When you are offering 29 or 39 fares and have fuel at +100 a barrel , something eventually has gotta give.
The way customer service is now, along with delays, I don’t see this stuff as a bad thing. I sure don’t see it getting worse! With those type of fares, how do you
A. maintain the aircraft
b. fuel the aircraft
c. pay the pilots
d. pay the ground support agents
e. pay the rent on the airport facilities
f. pay the admin/training departments
g. pay for the baggage delivery
h. pay for the GSE collisions with aircraft because you’re hiring borderline non criminals to work the ramp
i. pay the gate agents who could care less about your passengers because they’re getting minimum wage
j. and last but definitely not least, pay the nice cushy paycheck of the higher ups.
k. oh and of course get some loot to the shareholders

As an airline enthusiest I think it sucks, I love seeing 20 different tails lined up along a concourse, one going to this city, that one going to the other. It gets boring with the same paint jobs (especially the atrocity the Delta birds are flying around in these days) but, us enthusiests aren’t the ones making money for the airline I guess.

We see how it all shakes out