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November 14, 2007

Does Delta Have Merger Mania?

Filed under: Airlines, Fuel Surcharges — Rick Seaney @ 6:05 pm
Well, it sure seems so: today Delta said, it’s open to a merger. But Delta execs also denied reports they’ve already held merger talks with United. They did however say, they’ve formed a special committee to look into options, options that would include mergers. This could be good for the airlines, but what about us passengers?

First, a bit of background: a merger with United has already been pushed by some on Wall St.; and if this happens, a Delta-United combo would create the world’s largest airline.

Why would a merger be good for Delta and any partner? Well, it’s one possible response, and probably a sensible one (for them), to the problem of ever increasing jet fuel costs.

Why would a merger be less than good for passengers? Well compeitition keeps airline ticket prices down and less competition means only one thing for you and I — yes, higher ticket prices …

Let’s hope this is just another round of saber rattling …

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