Things in the Sky

Well the Department of Justice finally approved the merger between Delta and Northwest. In addition, according to this report the lawsuit that some travelers had filed to prevent the merger has been settled. Delta was quick to send out an announcement on this one. I received this WorldPerks e-mail yesterday:

Dear Daniel Webb,

We are excited to announce that Northwest Airlines is now a part of Delta!

For you, this means it’s business as usual right now, as we combine to create a premier global airline with a leading presence in the world’s major markets and a best-in-class loyalty program.

Rest assured that there is no change to your WorldPerks miles or your program status. And, you should continue to:

* Purchase tickets and modify existing reservations as you’ve always done via nwa.com or NWA Reservations at 1-800-225-2525
* Check in, check baggage and do business directly with the airline you are flying just as you did before the merger
* Earn WorldPerks miles as usual with Northwest and our Mileage Partners
* Redeem WorldPerks miles for award ticket travel, PerkChoice Cash and Miles award tickets, and items on WorldPerks Auctions
* Enjoy uninterrupted access to WorldClubs

And if you become a WorldPerks Elite member, you will enjoy complimentary upgrades when flying Delta. It’s just one of the many WorldPerks advantages you’ll enjoy as we work to combine our programs in a smooth and seamless manner, while providing the exceptional service you know and expect.

As always, our #1 priority is to get you to your destination safely, on time and with world-class customer service. Please visit nwa.com for more merger information.

Thank you for your continued loyalty and support.

Richard Anderson
Chief Executive Officer – Delta Air Lines

Now, of course some aren’t too happy about the deal:

Kevin Mitchell, chairman of the Business Travel Coalition, said the merger will mean higher fares and fewer connections between mid-size cities and business centers. He said he was concerned about an enlarged Delta and other possible airline combinations and joint ventures.

“A first priority of the new administration should be to reconsider the rationale behind antitrust-immunized alliances and the market power they can exercise to the detriment of consumers,” said Mitchell, who testified before Congress in April against airline mergers.

I’m going to be blunt here and say I really dislike comments like this as someone who is pro-merger and pro-alliance. Are money-losing airlines the best for consumers? And these alliances that “exercise to the detriment of the consumer” have made global travel easier for many.

In terms of “higher fares” and “fewer connections” – to be honest I think that’s already happened! The airlines have raised fares this year, and all the airlines have always significantly cut capacity – especially Cincinatti. In my opinion, if some smaller markets don’t get service to every single hub of the airline, that isn’t a huge problem. For some reason many keep thinking that this merger will make lots of cities drop off the route map. To put it simply – if there’s still demand that city is most likely going to stay open.  It’s just that unnecessary overcapacity is now going away.

If there should be anyone concerned about cuts, it should be the regional airlines. The new airline now owns three regionals: Comair, Mesaba, and Compass, but also contracts out work to Pinnacle, SkyWest, ASA (now owned by SkyWest, Freedom (owned by Mesa), and Repubic subsidiaries Shuttle America and Chautauqua. I wouldn’t be surpised to see some of these airlines get cut in the future.

I continue to be optimistic about this deal – so much is going right for it already and I think the airlines are quite compatible\. The only issue that remains is the new fleet is kind of a mess – but I do remember reading about some of the advantages that this mixed fleet has. For example, Northwest’s 747s might be useful on some of Delta’s international routes.

Anyway, I’m looking forward to seeing how it develops!

Today in the Sky linked to an article in the Minneapolis Star Tribune about a survey sent out to Northwest and Delta employees about what they want the company to be like post-merger. (I never found the questions though, please send them if you can find them.)

The unions that represent Northwest’s ground crews and flight attendants weren’t to pleased. Take a look at this excerpt from a statement on the IAM 143 website:

In their latest attempt to destroy our organization, both NWA and DAL have decided against meeting with District 143; instead, opting to deal directly with the membership in their latest divide and conquer scheme by asking for your insight.

You might be like me and wonder why we didn’t hear anything from the Delta side. Last night my friend Rick pointed out to me that other than the pilots, Delta’s employees generally aren’t unionized. If anything, this is just a continunation of past concerns from the Northwest unions about their representation in the new Delta.

Honestly, I think this is an overreaction. The airline is asking front line employees for their opinions about the merger – doesn’t seem like a big deal. Personally, I think the IAM and other unions should use more restraint in the future. I’m at the point where I take many of the union announcments with a massive grain of salt, and I wouldn’t be surprised if others have the same feeling – which isn’t good for the unions when they have more valid complaints.