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March 31, 2008

On-Again, Off-Again: The Northwest Airlines/Delta Air Lines Story

Filed under: Airlines, Delta, Northwest, Mergers — Rick Seaney @ 2:36 pm

The proposed merger between Northwest Airlines and Delta Air Lines is like something you might see in a celebrity gossip magazine. Are they together? Are they apart? Well, it depends on what week it is.

The latest news from the merger front is that Northwest Airlines and Delta Air Lines are back on. Pilots with both carriers have raised issues that have helped to stall merger talks, but now it seems the airlines might be willing to move forward without the full blessing of the pilots…

 

As reported in the Wall Street Journal, if the merger goes forward, it will most likely do so without the combined pilot labor agreement and the salary enhancements that the pilots foresaw as part of the deal. As we’ve seen in the past, mergers are a sticky business, often causing strife among employees at all levels. Mergers can also lead directly to higher priced airline tickets in certain markets, so the affect on the public isn’t always a positive one.

For an in depth look at how the Northwest/Delta merger and other proposed airline mergers will affect travelers, please read my abcNews.com column, “Do Airline Mergers Mean Higher Prices?”

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