Delta-Northwest Merger
The Delta-Northwest Merger Some airlines have struggled to stay in business for years. Due to the tough economic times, it has affected companies such as Delta and Northwest and the whole airline industry. The competition is intense and some of the global airlines are on the verge of going out of business. Recently, Delta and the Northwest Airlines have stated that they are merging together to create America’s premier global airline. Rising fuel prices is one of the primary reasons the airline industry has suffered. The airlines have experienced approximately 150,000 lost jobs, financial losses of $29 billion, and diminished profits (O’Neill). With the merger of Delta and Northwest, experts predict that the cost of flying will rise. The merger will also reduce competition and allow the planes to be more packed with travelers. Fliers in Memphis will suffer due to not having the choice of the two carriers to fly out of their local airports. There will be some countries that will suffer and some that will gain from this choice depending on which airport they can depart from. Experts also anticipate that United and Continental airline companies will most likely merge too. This decision of merging companies affects the company by giving them a better position to steal away the most profitable fliers. The new Delta-Northwest airline will offer more convenient routes between destinations throughout the world. It will be more convenient for consumers because it brings together two distinct route networks. This merger creates a global U.S. flag carrier and a better worldwide competitor. This business deal will hopefully change the airline industry for the better. The new airline will offer better benefits for the employees, customers, and the communities. Due to the Delta-Northwest airline merge, it will force other carriers to seek partners to help them stay in the business. Reduced competition usually hurts consumers, but the government must ensure
References: Sean O’Neill. Airlines: What the Delta-Northwest Merger means for you. Retrieved Tuesday, April 15, 2008, from: http://current.newsweek.com/budgettravel/2008/04/airlines_what_a_deltanorthwest.html Alexandra Marks. Delta-Northwest Merger: Pilots’ Demands Hold Any Deal Up. Retrieved March 4, 2008, from: http://www.csmonitor.com/2008/0304/p02s01-usec.html