Is Delta-Northwest merger really creating “a leader in providing customer service and value”?
Delta Air Lines and Northwest Airlines have finally announced their long-awaited merger this evening. No big surprises in the news release. We knew the Northwest name would be retired, and we knew how this would be spun.
Northwest is trying to assure its best customers that there’s only an upside to this deal. Here’s what its frequent fliers received this evening:
As a valued Northwest Airlines customer and WorldPerks® member, I wanted you to be among the first to hear that we have announced a merger with Delta Air Lines. Subject to regulatory review, our two airlines are joining forces to create America’s premier global airline which, upon closing of the merger, will be called Delta Air Lines.
By combining Northwest and Delta, we are building a stronger, more resilient airline that will be a leader in providing customer service and value. Our combined airline will offer unprecedented access to the world, enabling you to fly to more destinations, have more flight choices and more ways than ever to earn and redeem your WorldPerks miles.
You can be assured that your WorldPerks miles and Elite program status will be unaffected by this merger. In addition, you can continue to earn miles through use of partners like WorldPerks Visa®. And once the new Delta Air Lines emerges you can look forward to being a part of the world’s largest frequent flyer program with expanded benefits.
The combined Delta Air Lines will serve more U.S. communities and connect to more worldwide destinations than any global airline. Our hubs – both Delta’s and Northwest’s – will be retained and enhanced. We will be the only U.S. airline to offer direct service from the United States to all of the world’s major business centers in Asia, Latin America, Europe, Africa and around North America.
Both airlines bring tremendous strengths to this new partnership. Our complementary service networks form an end-to-end system that is truly greater than the sum of its parts. This is a merger by addition, not subtraction, which means all of our hubs – both Northwest’s and Delta’s – will be retained. In addition, building on both airlines’ proud, decades-long history of serving small communities, we plan to enhance global connections to small towns and cities across the U.S.
All of these positive benefits of our combination mean that we can:
* Offer a true global network where our customers will be able to fly to more destinations, have more schedule options and more opportunities to earn and redeem frequent flyer miles in what will become the world’s best and most comprehensive frequent flyer program.
* Continue to serve our current roster of destinations and to maintain our hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York, Salt Lake City, Amsterdam and Tokyo.
* Improve our customers’ travel experience, through new products and services including enhanced self-service tools, better bag-tracking technology, more onboard services, including more meal options, new seats and refurbished cabins.While we work to secure approval of our merger, which may take up to 6 to 8 months, it will be business-as-usual at both airlines. We will continue to operate as independent airlines and the people of Northwest will remain focused on providing you with the very best in safe, reliable and convenient air travel. At the same time, both airlines will be planning for a seamless integration of our two airlines, one that delivers to you the enhanced benefits that will earn – and retain – your preference.
As we work through this process, we will keep you informed at every step along the way. Thank you for your business and we look forward to serving you on your next Northwest flight.
Sincerely,
Bob Soukup
Managing Director, WorldPerks
No disrespect to Bob, but I don’t know if I’m buying any of this. Are you?
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19 Responses to “Is Delta-Northwest merger really creating “a leader in providing customer service and value”?”
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“You can be assured that your…Elite program status will be unaffected by this merger. ”
And just how can this be? Twice as many Elites competing for fewer seats? If you hold Silver or Gold status…good luck ever seeing a First Class upgrade again.
Nice spin, though…
No, I’m not buying anything, other than fewer airlines will mean less competition and higher airfares.
Here in Hawaii, their merger could also mean fewer seats and so of course, higher prices.
Next we’re waiting to see whether Mesa keels and if so, who will join Hawaiian over here. In the meantime, Hawaiian is shopping for planes and about to announce new routes. But it won’t be long until someone else owns them too, that’s for sure.
Aloha.
I’m a WorldPerks Gold Elite, and I didn’t receive that e-mail. Odd.
And they forget to mention that NWA is practically merged with KLM, which has been bought by Air France, and is buying Allitalia. The anti-trust movement in the EU, lead by the fierce EU commissioner Kroes has already woken up. I don’t know what aliances Delta-NWA has in Asia.
So the question is not only whether Delta-NWA is good, but whether, Delta-NWA-KLM-AirFrance-Allitalia is good.
BTW: I also love how they use this message to pitch their credit card. “Oil prices are through the roof, our companies need to merge to save money, the finanical market is in crisis, but *please*, keep using our credit card so we can black out even more flight for you after our merger”.
This is not good. Here are a couple of points that I believe this Pollyanna letter forgot to address:
1. I believe Delta is the airline that ranks right at the bottom in customer polls and performance. Northwest was middlish, if I remember correctly. How is combining a terrible airline with a mediocre airline going to make them great in customer service? As far as I can see, it will just give them more bags to lose and more people to bump.
2. The prices are going up. I saw that the average ticket was $100 more this month than in January for all airlines. How is losing one competitor going to help? I live in Iowa where my flight options are very limited unless I feel like driving 5+ hours to a “hub” city. I am very dependent on Northwest because it’s one of the few airlines that fly in at all. Wanna bet that the Cedar Rapids to San Diego flight that cost $350 (with fees) in Oct 07, and $490 (without fees) in Mar 08 will now cost $600+ in 6-8 months? And it will be with a layover in Atlanta, making us fly 6 hours extra. After all, what are we going to do about it?
This is no good all the way around. Well, except for the CEOs, of course. Here’s hoping Congress tells them to forget it.
While in general mergers are bad for pretty much everyone other than the execs of the purchasing company, in this case I think it’s better for many more stakeholders. With the cost of fuel rising so fast and the current competitive environment, the airlines cannot raise fares enough to recoup the cost of the fuel. As such, we are starting to see airlines fail. Currently, it is the smaller carriers, but eventually it will be a larger carrier.
Compare the results if Northwest or Delta failed instead of merging.
What I want to know is if they are keeping the NWA Unaccompanied Minor Program intact?
My ex uses them for this program and we have had no issues what-so-ever with it. In fact, the gate agents on the Providence Side tend to be very conscientious when it comes to unaccompanied minors.
This sends a chill through me as a parent with an ex 1/4 of the way across the country.
http://www.newglobalairline.com/
“Our hubs – both Delta’s and Northwest’s – will be retained and enhanced.”
I lived in St. Louis before and after AA swallowed TWA, and I can tell you this doesn’t add up. If ALL of the hubs are retained and enhanced, then the combined airline will be terribly inefficient. Capacity has to be cut somewhere. It doesn’t make sense to have Detroit-Cincinnati-Memphis, or Memphis-Atlanta. At least one of these cities will no longer be a hub, or will lose both international flights and domestic options. Atlanta is untouchable because of the trans-Atlantic flights, but something has gotta give…
The thing that I heard this morning which sealed the fate of the merger for me personally, was when the Delta CEO said, on the Today Show, to the effect of:
“We’re both really different and hope to integrate our business models . . . . ”
Don’t they ever learn? If one carrier has the corporate history of a profitable, genteel southern company, which still hangs on at some level in the corporate history, and the other is known simply as ‘Northworst,’ well, I hate to say it but you have a cultural misfit.
The ways of doing business are so different , with different histories, different people, and different corporate cultures, about the only thing they have in common are surly flight attendants in their fifties on most mainline flights.
How many times has this type of merger been tried before?
PeoplExpress / Eastern / old Continental? Failure
National / Pan Am? Failure
TWA / Ozark? Failure.
USAir / America West, not over but, we can see where its’ going.
Northwest / Republic/ Hughes Airwest - failure
PSA / USAir - nuff said.
And the Reno Air / American merger, that sure led to lower fares and better service on the West Coast, now, didn’t it. Same with American and AirCal.
The CEO’s and the dealmakers will take their money and move on to their next debacle.
Northwest’s pilots will schedule another ’slow down’ by the rule book - why would Delta want these people working for them? Why do you want to add more trouble to an already troubled and surly workforce?
The NW pilots will stamp and scream and fuss and generally act like 2 yr olds til they get their way - and they will at some level - which will embolden the DL pilots and then the mechanics and the flight attendants and then the ground staff and the bag handlers ad infinitum and the whole sorry mess will be back in Chapter 11 by the end of 2009. At which point everyone loses as even more contractions and reductions will get crammed down the employees throats which will make them angrier and surlier and less willing to care one whit about their jobs or their customers.
Other than that, it should work out fine.
[...] Air Lines Inc. and Northwest Airlines Corp. creating the world’s largest airline. Lots of questions raised about the recent merger. Is it going to lead to the lack of competition which will lead to [...]
No disrespect to Mr. Soukup, but why wasn’t his letter signed by NWA’s CEO? Not to take away from the meaning of the message, but there seems to be a lack of commitment from the very top — which might take additional credibility away from an already weak and unpopular position.
One thing strikes me as odd: Delta’s current CEO, Richard H. Anderson was CEO of NWA from 2001 to 2004. Is it just a coincidence? Or has this plan been in the works for a long, long time?
I am a Platinum NWA flyer since 2002. I typically put 100+ segments on NWA a year, 10 or so each on Delta, Continental and United as well. I live in the heart of NWA’s territory, flying out of MSN to points in the US and Canada. I am against this merger because of reasons stated here (less competition, more Elite’s vying for fewer upgrades, more FF members vying for award seats, Anderson & Steenland lying that they are going to leave the hubs in tact….sorry, economics will dictate that Memphis & Cincinnati go and Minneapolis will be reduced, etc.)
But in my view, Delta is one of the worst airlines (sorry Delta supporters). NWA’s WorldPerks Program is much better in many ways as has been described here and other boards. Let’s look at the World Club vs. Crown Room - WC wins. Better food selection, free internet, more locations, etc. Even the naming conventions, “Crown Room” sounds like a place for Queens to go to or a place to have dental work done, either way not to attractive.
Customer service to me is better on NWA. Example, 4 years ago I had a roller bag mangled on NWA in checked luggage, took it to the luggage Service Desk, they gave me a new bag on the spot! The bag I got was even better than the one I originally owned! Got bumped out of Cincinnati on a Delta flight, the GA did not care that I was Sky Team Elite, did nothing to assist me other than tell me to call Delta reservations to rebook for later in the day.
For me Red Tail aught to merge with Continental, better fit, better culture, better Customer Service! And sorry Steenland and Co., in my world, NWA name would remain, but Continental’s management would be in charge. Dump Cleveland as a hub as well and be up front about it. Oh, and while you are at it, bring Alaska Airlines into the merger, providing badly needed West hubs and market share. NWA/CO/Alaska now that would be an airline! NWA may not be pretty, but she has a heart, she gets you there and she has a pioneering spirit! Steenland and Co are sell-outs, only management will be winners in this deal. The price of oil will continue to be an issue for all carriers, combining Delta (bad CS) with NWA (mediocre CS) hardly creates a “Premier Global Airline” airline.
Bottom line if this Delta/NWA merger goes through, I will give them time to prove to me this is “America’s Premier Global Airline” but rest assured United/Continental will have a Elite Status Match program going, providing me my “ultimate customer choice” and taking my business elsewhere.
Unhappy in WI with the prospects of Delta/NWA. Long live Red Tail!
Tell me–what sort of knot do you use to lash together two sinking ships? NW and DL are trying to address their inability to shove their shoddy service and Shylock prices down the collective throats of millions of customers. They’ve developed an old-fashioned plan: cobble together an anti-competitive trust. With their jackboot firmly on the throat of the traveler, listen to them wax on about bigger networks and better service. Hogwash.
As a NWA Platinum, I’ve seen the NWA customer service go to pot. It is extremely rare when I find a NW employee who doesn’t have a chip on their shoulder (well deserved, I might add). The only airline I’ve found that has worse customer service and a “I don’t care” attitude is Delta. How can such a merger be better for me, the customer. I go from bad customer service to worse. And the FF program will be unaffected…What have the PR people been smoking? Top tier in NWA is 75,000 miles, top tier in Delta is 100,000.
I am looking for flights on NWA from MSP to Europe. It has always been a long flight from MSP to Amsterdam then to the next leg. Already, flights from MSP to Atlanta, then Amsterdam. WHY would I want to take one extra hours to my already long flight to go to Atlanta, add 3 hours to my flight, switch planes and head north again, to head across the Atlantic! That is insane! I can see changing in Chicago, Boston, NY, but Atlanta, why? I don’t want to fly through the ‘busiest airport’ in the US to go anywhere else, except to go to Atlanta.
it’s been quite a while since i expressed my opinion. It’s deja vu all over again. With regard to the mergers, for those who believe it will for be good, get real. Less seat for frequent fliers elites, none for the rank and file non elites. I’ve almost stopped flying except the short flight from nyc to columbus, OH to visit my grand daughter. I’ve never been able to use miles except for (double) miles (50,000) for a seat on a commuter jet on a less than 500 miles flight.
I used to go on four cruises a year but since i have to fly to the ship, miles can’t be used (no seats available - i’m a non elite ) except for the double amounts.
i keep seeing these bonus miles offered for airline affiliated credit cards but even with my very large spending, i’d have to spend $100,0000 to get enough for two domestic awards. who are they kidding?
it’s bad enough to have to go through the security checks, high fares, tight seats, no food or bad snacks, and a lot of rudeness.
I must say that after many years of a lot of flying as a journalist which brought me elite memberships in A/A, UAL, CO and American West, i’m in the process of burning the last of my accumlated miles.
There is one suggestion though. If you are flying internationally, stay away from the sorry US carriers. Even most of the foreign carriers are following the US carriers in service, etc. 2 exceptions: Lufthansa toEurope; Singapore to Asia. Also Virgin Atlantic. For being treated like human beings.
We can only hope that European regulators will put the ka-bosh on this ill-conceived, ill-fated merger.
I recently read what Delta told Kentucky governer– Cincinnati hub would not be eliminated because of the low airport costs. Yet CVG is the most expensive airport to fly out of in the US and that includes Alaska. You can drive 50 miles north to Dayton and fly back to CVG and onward and pay less for the same destination.