Delta Merges with Us Airways
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They want to merge Delta Air Lines and Northwest Airlines to improve life (allegedly) for shareholders and consumers. The companies stocks plunged after the merger was announced, so we know shareholders arent crazy. Consumer groups raised heck, too, so they also know what they would be in for.
Lets hope antitrust regulators will be similarly clear-eyed. Letting Delta marry Northwest – or US Airways join United Airlines, which is reportedly in the works – will raise fares, strand secondary cities and make air service even worse, if you can believe thats possible.
Chances of operational success for either deal “are extremely remote, based upon history,” says Kevin P. Mitchell, chairman of the Business Travel Coalition. “Customer service is likely to be a disaster for many, many, many years.”
US Airways stock is about a fifth of what it was when it combined with America West. Thanks to union problems, the companies still essentially operate separately, although the merger closed almost three years ago.
A combined Delta and Northwest would own 18 percent of the U.S. domestic market. United and US Airways would have 17 percent. Those