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This story has mostly positive ratings. 112 votes / 1 sink
Delta OKs deal to take over Northwest
Travel – ATLANTA - Delta Air Lines says it has reached an agreement with Northwest Airlines to take over Northwest and create the world's biggest carrier. The boards of both companies gave the deal the go-ahead Monday.
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I am very distrustful of companies too big. The customer service will deteriorate and I am not clear that such a behemoth will be able to save that much overhead.
What I think will happen is that much of the savings will become mid and lower level expenses. The company will become even more out of touch with reality than before and will have to file, eventually, for bankruptcy, only this time they will have more muscle to negotiate, because they will be catastrophically larger.
Is this a good thing? I live near Atlanta and would hate to see Delta go bankrupt. But will acquiring Northwest help with service and safety and still keep the airline solvent? Or is this a bigger monopoly that will eventually bode ill for the industry as a whole? In order to save money and built capital, the combined airline may cut or consolidate some less used routes and raise prices or eliminate some services. But I may be worried about nothing and the airline will slash prices, improve check-in and departure procedures, update older planes, improve maintenance and safety inspections, improve services and amenities during the flight and make flying the enjoyable experience it should be. Now has anyone seen my tinfoil hat?
After what now seems like a momentary blush of competition, the consolidation to an oligopoly is nearing completion. This is the case in other industries as well. What hath Alfred E. Kahn wrought?
(This was not intended as a comment on Charlson's post, but at least it fits, unlike most propeller roulette placements.)
Charlson's comments mirrors what I was going to say. Well put.
In the long run less competion will bring higher prices, less service and response to customers, and a bigger splash when and if the combined company goes under.
I don't like the logic that two companies, operating on or near the brink of bankruptcy, can somehow by magic be made solvent and viable by joining forces, especially during turbulent economic conditions such as we have right now.
And yes, I do understand about consolidation of several functions, but even so, right now it seems like the wrong time.
Northwest managed to lose my luggage thirteen times in a single calendar year. They have GOT to be the worst airline anywhere. Once I was the only passenger on an early-morning MD-80 from Memphis to Jackson, MS and...., you guessed it, they lost my luggage.
When there is only one passenger on the damned plane, with a full flight crew, it takes as creative airline to lose the luggage.
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