Friday, April 11, 2008

Delta and North West to merge

Delta Air Lines and Northwest Airlines are to merge, but they will keep their respective brand names. The HQ for Delta will remain in Atlanta and their pilots will be given a raise in pay and they would get an equity stake in the combined airline. Together the two airlines would become the largest in the world. Whether the Northwest brand will be around in ten years, I do not know. However, I would think it highly likely that Delta will probably go for a more international American style logo, and eventually drop the Northwest bit. After all, it isn't like Air France and KLM, where national identity is important to each carrier in that merged venture.

An analyst said, "It always made strategic, long-term sense for these companies. With oil at $110 per barrel and the weakening economy, Delta probably got to the point where they felt like they needed to move ahead.'' And such a move would not stifle competition on the Transatlantic routes, so the fare paying passengers will not suffer from the deal.

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