Delta - The Giant Airline
Just days following the Delta takeover of Northwest airlines was approved, It rolled out it's new management team. Could it all go smoothly, though this gigantic merger was approved quickly? there is lots at stake here, and this will take time.Airlines Northwest
It might take a year or so before the two airlines are entirely merged. More empty gates will take less revenue to airports at a time whenever they require more, as the carriers combine gates at every airport they share. Some airport facilities, like snack bars or stores, will discover less business. They may be closed, along with the jobs they provided. If any, all small enterprises who rely on either carrier of the majority of with their revenue might get a reduced slice.Northwest Airlines
A Boeing 747, the greatest airplane within the Northwest fleet, could be the first to become repainted in Delta colors. How long could it choose to use integrate all the Northwest pilots, which opposed the merger? , and will they need to require a pay cut? It might be the Northwest employees who will get fired, since the loser in this particular merger.
What will happen with overlapping hubs? can they be downsized or de-activate. The Northwest Memphis hub has always competed with Delta's fortress hub in Atlanta for southern traffic. The Northwest hub in Detroit competes with Delta's in Cincinnati for eastern traffic. Delta's western hub in Salt Lake is probably safe. In a surprise move, Delta announced new service from both Pittsburgh and Raleigh-Durham to Paris. This can be welcome news in Pittsburgh, that had a big cutback by USAirways.
It might be the discount airlines who benefit, although fares will probably go up where Delta now has a monopoly. Southwest airlines, that features a long past of transferring when others scale back or move out, has already announced it is going to start Chicago Midway to Minneapolis service in March of 2009, charging far lower fares than Northwest. And JetBlue have been kept from Atlanta, that may change. Air Tran has been increasing service in Milwaukee, about halfway between the Northwest hubs of Detroit and Minneapolis. The turbulence continues.