Delta/NWA Execs Talk Of Merger As A Done Deal | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-04.22.24

Airborne-Unlimited-04.16.24

Airborne-FlightTraining-04.17.24 Airborne-AffordableFlyers-04.18.24

Airborne-Unlimited-04.19.24

Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
Watch It LIVE at
www.airborne-live.net

Thu, Apr 17, 2008

Delta/NWA Execs Talk Of Merger As A Done Deal

But Anti-Trust Scrutiny Awaits

The proposed joining of Delta Air Lines and Northwest Airlines faces many harsh questions in the months ahead from federal antitrust regulators, wary the new "global airline" might prove too monopolistic... but to hear Richard Anderson and Doug Steenland speak, one would think all that's required for the deal to happen are some forms to be completed.

USA Today reports the two old friends -- Delta CEO Anderson (above, right) once held that title at Northwest, where Steenland, Anderson's former number-two man, now reigns -- embarked on a massive public relations campaign this week, in an attempt to sell the merger as the best choice for airline employees and passengers alike. But that rosy plan faces criticism from lawmakers who are worried about reduced competition, higher ticket prices, and closings of hubs in their districts.

In something of a surprise to both carriers, shares in Delta and Northwest also fell Tuesday, the day after the merger was announced publicly. Shares fell as much as 12 percent at Delta, on a day when the Dow Jones rose 60 points overall. Many analysts view the market's reaction as a signal investors aren't entirely sure the deal will go through... or if it does, will only become reality after concessions from both sides, bitter contract fights with employees, and probable layoffs.

Despite that gloomy outlook, however, most industry insiders believe the merger will pass muster with the Justice Department by year's end, helped by news last week that regulators in the US and European Union backed a four-way trans-Atlantic alliance between Delta and Northwest, and Air France/KLM.

Given the implications of that agreement, executives at Delta and Northwest believe the combination of their two airlines -- which directly compete on just 12 domestic routes, as Delta and NWA now fly to different airports within the same large markets -- should encounter smooth sailing.

For a deal to happen this year, the regulatory seas would need to be calm indeed... as the accelerated timeframe would represent a major decrease in the amount of time regulators have needed to approve most mergers between airlines in the past 20 years. Still, many believe it can be done... including Roger Fones, who until 2005 ran the DOJ's anti-trust division, and who blocked a 2001 merger between United and US Airways.

"The industry looks a lot different than when I was in government," Fones told USA Today this week. "When the government looks at individual markets, it will see that the market shares of low-cost carriers are higher" -- an indicator even a joined Delta/Northwest wouldn't necessarily dominate most markets.

That view is contrary to Anderson's beliefs, however. "This gives us the opportunity to have the No. 1 or No. 2 market share in every market in the world," he said this week.

Maybe Anderson should speak a bit more quietly when he says that...

FMI: www.newglobalairline.com

Advertisement

More News

ANN's Daily Aero-Term (04.24.24): Runway Lead-in Light System

Runway Lead-in Light System Runway Lead-in Light System Consists of one or more series of flashing lights installed at or near ground level that provides positive visual guidance a>[...]

ANN's Daily Aero-Linx (04.24.24)

Aero Linx: Aviation Without Borders Aviation Without Borders uses its aviation expertise, contacts and partnerships to enable support for children and their families – at hom>[...]

Aero-FAQ: Dave Juwel's Aviation Marketing Stories -- ITBOA BNITBOB

Dave Juwel's Aviation Marketing Stories ITBOA BNITBOB ... what does that mean? It's not gibberish, it's a lengthy acronym for "In The Business Of Aviation ... But Not In The Busine>[...]

Classic Aero-TV: Best Seat in The House -- 'Inside' The AeroShell Aerobatic Team

From 2010 (YouTube Version): Yeah.... This IS A Really Cool Job When ANN's Nathan Cremisino took over the lead of our Aero-TV teams, he knew he was in for some extra work and a lot>[...]

Airborne Affordable Flyers 04.18.24: CarbonCub UL, Fisher, Affordable Flyer Expo

Also: Junkers A50 Heritage, Montaer Grows, Dynon-Advance Flight Systems, Vans' Latest Officially, the Carbon Cub UL and Rotax 916 iS is now in its 'market survey development phase'>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC