Delta - NWA merger effect on VPS and PFN

[TreeFrog]

My initial gut-feel is that this will mean higher fares and less choice of flights at VPS and PFN, since NWA and DL account for the lion's share of VPS flights and all of them at PFN.

Longer-term, there would seem to be a significant risk of losing the NWA hub at Memphis, which would put us more at the mercy of connections through ATL - where I have much more trouble than I do through Memphis.

Anyone with an informed viewpoint who can comment?

 

[Beach Runner]

My brother works for Delta. I plan to talk to him tomorrow about the buzz at work. If I hear anything, I'll post. Brother was a victim of the Ron Allen layoffs, was later rehired, and had enough seniority to avoid the later layoffs. I'm keeping my fingers crossed.

Funny story -- Delta employees were really mad about the Ron Allen layoffs (around 1990?), and every time Ron flew, the baggage handlers just "accidentally" damaged or lost his bags.

 

[Will B]

No hubs are being closed as a result of the merger. This was one of the good things about our marriage to NW. Our route systems compliment each other.

BTW...there's a long long way to go. If all goes to plan, it will be close to December before anything happens...

 

[scooterbug44]

Delta baggage handlers need to put effort into losing luggage like Northwest needs to leave my arse in Memphis more often!

Northworst + Don't Expect to Leave The Airport =

We so need a decent train system!

 

[TreeFrog]

Today's Memphis Commercial Appeal says the hub there will not close. Of course, that could decision could change over time. Most corporate buyouts include promises that are later reversed. For now, it appears that Delta has realized they couldn't just dump the Memphis hub load on Atlanta, Detroit, and Minneapolis for various capacity, scheduling, and operational reasons.

But my questions and concerns about the Okaloosa Regional and Panama City airports remain. And I'd expect the folks at Pensacola have the same concerns.

 

[scooterbug44]

Got this from Northwest this morning:

Dear Scooterbug,
[FONT=arial, verdana, sans-serif] As a valued Northwest Airlines customer and WorldPerks? member, I wanted you to be among the first to hear that we have announced a merger with Delta Air Lines. Subject to regulatory review, our two airlines are joining forces to create America?s premier global airline which, upon closing of the merger, will be called Delta Air Lines.

By combining Northwest and Delta, we are building a stronger, more resilient airline that will be a leader in providing customer service and value. Our combined airline will offer unprecedented access to the world, enabling you to fly to more destinations, have more flight choices and more ways than ever to earn and redeem your WorldPerks miles.

You can be assured that your WorldPerks miles and Elite program status will be unaffected by this merger. In addition, you can continue to earn miles through use of partners like WorldPerks Visa?. And once the new Delta Air Lines emerges you can look forward to being a part of the world?s largest frequent flyer program with expanded benefits.

The combined Delta Air Lines will serve more U.S. communities and connect to more worldwide destinations than any global airline. Our hubs ? both Delta?s and Northwest?s ? will be retained and enhanced. We will be the only U.S. airline to offer direct service from the United States to all of the world?s major business centers in Asia, Latin America, Europe, Africa and around North America.

Both airlines bring tremendous strengths to this new partnership. Our complementary service networks form an end-to-end system that is truly greater than the sum of its parts. This is a merger by addition, not subtraction, which means all of our hubs ? both Northwest?s and Delta?s ? will be retained. In addition, building on both airlines? proud, decades-long history of serving small communities, we plan to enhance global connections to small towns and cities across the U.S.

All of these positive benefits of our combination mean that we can: [/FONT]

• [FONT=arial, verdana, sans-serif]
  [*]Offer a true global network where our customers will be able to fly to more destinations, have more schedule options and more opportunities to earn and redeem frequent flyer miles in what will become the world?s best and most comprehensive frequent flyer program.
  [*]Continue to serve our current roster of destinations and to maintain our hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York, Salt Lake City, Amsterdam and Tokyo.
  [*]Improve our customers? travel experience, through new products and services including enhanced self-service tools, better bag-tracking technology, more onboard services, including more meal options, new seats and refurbished cabins.[/FONT]

[FONT=arial, verdana, sans-serif]While we work to secure approval of our merger, which may take up to 6 to 8 months, it will be business-as-usual at both airlines. We will continue to operate as independent airlines and the people of Northwest will remain focused on providing you with the very best in safe, reliable and convenient air travel. At the same time, both airlines will be planning for a seamless integration of our two airlines, one that delivers to you the enhanced benefits that will earn ? and retain ? your preference.

As we work through this process, we will keep you informed at every step along the way. Thank you for your business and we look forward to serving you on your next Northwest flight.

Sincerely,

Bob Soukup
Managing Director, WorldPerks

[/FONT]

 

[Smiling JOe]

a merger of the two, may be a cost effective method used to help stabilize prices during a time of ever-increasing fuel prices. The down-side is as you note, a loss of competition, which typically increases prices to the consumer.

 

[beachmouse]

One thing that helps is that VPS does have to compete with the bigger Mobile and Pensacola airports for the same customer base, and both of those have a fairly decent number of different carriers. So there's something that tugs prices lower there. In turn, those lower prices at VPS can encourage PFN to keep prices lower at well.

And all the airport directors between PFN and Biloxi are extremely agressive about trying to get new carriers into their markets. They're constantly trying to increase carrier diversity, which turns into better value and options for the consumer.

Which is good because there is no way I'm getting on an ASA plane again unless there are extrordinary circumstances.

 

[Will B]

http://www.newglobalairline.com/

 

[scooterbug44]

Article on MSNBC predicts that fares will be higher and that United & Continental will now merge to stay competitive.

http://www.msnbc.msn.com/id/24128795