Northwest, Southwest Join Forces To "goWest"
ANN APRIL 1st "SPECIAL" EDITION: It's the
merger NO ONE in the industry expected... but in a surprising move,
on Tuesday officials with Northwest Airlines and Southwest Airlines
announced the two carriers will join forces, pending regulatory
approval, to form what executives called "the first step in the
direction we expect all domestic airlines will ultimately go in
coming years."
The new carrier, tentatively named "goWest," will merge
Northwest's global route network, including its extensive
Asia-Pacific presence, with Southwest's famed single-class service
and low prices. Details of the proposed merger remain sketchy at
this point; unidentified sources tell ANN the two sides met in
secret talks over the past several weeks.
Under terms of the proposed deal, as told to ANN, Southwest CEO
Gary Kelly will retain that title over the new airline, while
Northwest CEO Doug Steenland will be named head of employee
relations.
"When people think of a US-based domestic and international
carrier, we want them to think 'let's goWest!" said Kelly. "While
both the Northwest and Southwest brands remain instantly
identifiable -- albeit for very different reasons, and some reasons
better than others -- we felt it was time to branch off in a new
direction.
"After all, you haven't really flown until you've gone west,"
Kelly added.
News of the deal came as good news for Northwest executives and
investors, who in recent weeks appeared to grow increasingly
motivated to merge with another airline, after talks with
Atlanta-based Delta Air Lines reportedly fell through due to pilot
disagreement over combined seniority lists.
From his new office in a Dallas, TX basement, Steenland said
both sides hope to iron out labor agreements between employees at
both airlines in the coming weeks, though he admitted several
issues remain.
"Let's face it --
Southwest pilots aren't going to like taking the necessary pay cuts
to bring them in-line with Northwest pilot pay," he said. "And
Northwest flight attendants will likely need to go through
extensive retraining, to teach them how to smile and things like
that."
Despite the difficulties ahead, however, Steenland called the
merger "the last, best hope for Northwest Airlines.
"I wouldn't go so far to say we were desperate -- rumors we
asked Skybus if they were interested are absolutely untrue," said
Steenland. "But I will say a partnership with Southwest gives our
employees, and our airline, the best chances of surviving in a
highly-volatile travel market, sparked by high fuel prices."
Officials with both carriers hope regulators will sign off on
the merged airline before the end of 2008, with goWest-branded jets
flying by the first quarter of 2009.