So what does the proposed merger between US Airways and Delta mean for passengers?
If this $8 billion hostile takeover goes through, US Airways will essentially gobble up bankrupt Delta, but take on its name. It’ll be a lot like the America West-US Airways merger, where America West acquired the moribund airline but took on its name.
The “new” Delta will have what US Airways CEO Doug Parker calls “merger synergies” to the tune of $1.65 billion. What that means, for those of us who didn’t go to B-school, is that where both airlines now compete or double-up on resources (such as airport terminals) a single, merged airline will be able to save money.
Part of that calculation surely is how much extra money a “new” Delta would make when routes that Delta and US Airways once competed on are combined. And that’s really the bad news for passengers: We may be paying more for our airline tickets on certain routes as a result of this merger.
But Delta frequent fliers may also be breathing a sigh of relief this morning. Their SkyMiles miles are safe. Their airline will keep flying.
Delta employees, on the other hand, may not be feeling so warm and fuzzy. They watched their colleagues from the “old” US Airways be assimilated into the former America West, and let’s just say that not everyone was happy with the way that worked out. If you want to start an argument with an ex-US Airways person, just bring up the subject of seniority.
Bottom line: this deal will save Delta, but at a price. A higher price than US Airways claims, probably. Another major US Airline — US Airways — will disappear from the skies permanently.
I, for one, am curious to see how this will play itself out.
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{ 2 comments… read them below or add one }
Dear Elliott,
Congrat’s on the new family member. May health & happiness ever grace your home.
With regards to the proposed merger between US Air & Delta: I think it’s a perfect match! Neither airline know anything about customer service nor do they care to learn. Both will screw passangers every chance they get.
Just think of the power this gives the traveling public & especially frequent flyers: We could all stop flying the merged airline & both both out of their misery that much sooner!!!
Oh Midway: Where are you when we need you???
At least most US Airways employees are still working. If they are bummed about the America West deal, they ought to talk to former TWA employees. The whole premise of American’s buyout of TWA was to preserve most TWA jobs, and as part of the buyout, the employees were supposed to be integrated into the seniority system. Guess what? It was a disaster for most TWA employees. From what I read in Airways magazine, most if not all TWA flight attendents lost their jobs, and pilots were pretty much dumped to the bottom of the list. All American wanted was the routes, not the airline, and essentially took over those routes with American employees and aircraft.
Although I liked America West and felt they could fix some of the issues US Airways had, I don’t necessarily like the idea of them gobbling up Delta. I tend to prefer Delta the best of the legacy carriers, and there is still an element of “southern hospitality and charm” to the airline that would be lost. Delta just needs to focus more on value and service vs. price, and they can come out of Chapter 11 as a viable carrier.