Wednesday, April 16, 2008

Flying the Merging Skies

There seems to be a lot of consternation regarding the merge of Delta Airlines and Northwest Airlines. Frankly, I'm not exactly sure why.

Would it not make more sense for all parties involved to support this merger? Is Consumer Choice going to be severely degraded? Not really. Are jobs going to be lost? Probably none that weren't already in danger. Will prices go up? Highly unlikely, at least in terms that are directly related to the merger. And those seem to be the biggest concerns when it comes to this proposed merger.

But I ask this question: if Delta and Northwest did not merge, wouldn't it be more likely that one of the two would go out of business? Would that no guarantee greater job losses? Would that not guarantee even fewer consumer choice? Would that not lead to higher prices as the demand shifts to the remaining carriers?

The Delta-Northwest Merger is going to be a long and arduous process for all who are concerned. But to say that this the merger should be rejected are completely wrong in their assertions. The merged airline will provide American consumers with a stronger, more financial stable airline that will have a larger fleet with reduced operating costs due to the new economy of scale. Sure it may be a headache for passengers and employees for the time being, but more than likely consumers get a stronger airline over the long-term. And given the state of the economy, this cannot be anything but a good for passengers, employees and consumers.

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