DL/NW Merger Opinion

April 24, 2008

I am really excited about this new merger, but I am also very skeptical of this merger’s promises. I believe that although it will bring new destinations to people, the prices will rise 15-20% according to Delta CEO Richard Anderson. I honestly believe that Delta will continue to tell us that they will keep the Memphis and Cincinnati hubs, but I believe they will close it. The good news is that they will produce new business synergies and cost savings. With the money they save they should get a fleet mix of more Boeing 787s and other Boeing aircraft. I can honestly see them replace the DC-9s real soon. Whether the merger will approve still has to be seen, many unions like the IAM have opposed to this merger because they believe it will only bring job losses rather than benefits. I think that this helps me and is great, but I feel sympathy to those who will lose their jobs because of this merger. I will keep track of this merger as best as I can.

Source: Jaunted