So Delta Air Lines is reportedly looking to get hitched. Again. Is anyone surprised? The front-runners include United Airlines and Northwest Airlines, if news reports are to be believed (they’ve been dead wrong many, many times, so take it for what it’s worth). But what hasn’t been widely reported is that if any of these airline marriages happen, they could create the world’s least favorite airline.
I’m not talking about a bad airline from an investor perspective. In fact, combining Delta with Northwest or United or even US Airways could create a more profitable carrier, at least in the short term.
I’m talking about what would happen from a customer perspective. Have a look at the latest Air Travel Consumer Report and check out the “complaints” section. Do a little math. A combined Delta/Northwest or Delta/United would become the most complained-about airline overnight.
Probably the worst performing airline, too. Case-in-point: post-merger US Airways. What a disaster.
The management of these airlines will probably tell regulatory authorities that hooking up will be a “win-win” for passengers and somehow create a more “competitive” airline industry.
It’s nonsense, of course.
Allowing any of these mergers would be a “lose-lose.” The industry would become more monopolistic, less competitive and consumers would pay higher fares and will probably get treated worse than they were before.
The only winners? The lawyers who are handling the deal. The managers who will award themselves big bonuses and softly land in waterfront mansions in the Caymans, courtesy of their golden parachutes.
Perhaps Delta should merge with Greyhound instead?
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{ 8 comments… read them below or add one }
Uh…yes…a far better solution would be to watch all three go out of business as oil hits $150 a barrel…
This is just another attempt by Pardus Capital Management (Carl Icahn) trying to mess with the industry yet again.
I wrote about this last November.
http://nexus-station.typepad.com/gentleman_agitator/2007/11/just-when-you-t.html
I dunno agitator – the industry is in a lot worse shape than when Icahn took his profits outta TWA. You can’t do a deal like that anymore.
DL would be a good fit for a NWA -= combine the European routes of DL with the Pacific of NW – add a hub that captures midwest Europe traffic for Delta. Also – lots of cranky pilots and employees to share the nastiness wealth!
Also lets NWA dump MEM as whatever they call it now – also Detroit can be shut down since it us a nightmare and CVG works better anyway.
The problem with the airlines is service. They are simply a bus company – [Inter] Continental Trailways if you like. And the marketplace has proven that no one will pay for service. When it costs $6,000 for a business class ticket from NY-London on a major carrier, and you get the horrible service you get on American [Continental was not that bad the last time I flew] for that money, it is no wonder that Silverjet and the other carriers exist.
The service in Coach on JAL from NRT-PEK was better than the business class service and meal I received on American in from NY to Tokyo.
As a matter of fact I just changed my affinity credit card to Continental – the service is soooo much better most of the time.
I’ll say one thing – the carriers need to go bankrupt and have the surviving airline buy the assets and planes that they want – and then staff them with their own cranky employees – you know how hard it is to manage TWO distinct sets of cranky employees – both of whom think that they should be treated better? If one company goes belly up – then the others do not have a job. If they GET a job with the new companyt, they are darned happy to be working. If they end up getting merged, then they spend the rest of their natural lives complaining about their place on the seniority list. Which they take out on their passengers.
Joe,
I still do not want Ichan messing with the industry anymore, but I agree with your other points. NWA is the best partner for DL of their has to be a merger. I would rather let the marketplace sort things out personally though. And yes, let some go out of business if need be.
CVG is an unheralded hub. I intentionally funnel my Delta flights through there to avoid ATL.
As far as service is concerned the lost cost carriers set the standard for a passengers expectations for a level of service and the the big boys followed suit in order to bring costs down. A race to the bottom.
Now, personal service always seems to be fairly consistent for me on Delta. That is why they are my favorite followed by Continental. All the others I’ve flown on seem to be a spin of the wheel, especially United. I have had heaven and hell with them, but more hell. That is why I think DL should stay away from them like the plague.
- GA
P.S. : Christopher,
Good weblog!
Gentleman,
Thanks!
Chris
What do you think the new name will be? Northworst?
Delta needs to stand alone and not drag an awful Northworst into the picture. Delta came out of bankrupcy strong and is growing with their international market.
Don’t do it Delta!
Delta is inferior to Northwest in every way…from the DOT rankings to balance sheet.
Those are the facts.
I fly both and NW is by far the most professional. For those that still attempt to use the childish moniker “Northworst” it says far more about your ignorance and lack of flying experience.
A NW passengenger