If bigger is better, then Delta Airlines is about as good as it gets.
Yesterday the Department of Justice approved the airline's $2.6 billion merger with Northwest Airlines, creating an aviation giant with over 800 mainline planes, service to 375 cities, 75,000 employees, and $35 billion in annual revenue. Compared with number two American Airlines' $23 billion in revenue, the combined carrier is a giant.
For now, it's business as usual for the traveling public, with the two airlines still operating as different brands. Both websites are still up, ticket counters and gate areas are in same spots, nothing has been relocated or changed. Operationally, expect the status quo for at least a year.
Henry Harteveldt, VP of travel for Forrester.com, told Wired.com that while there are potential downsides to the merger, he ultimately thinks it will be a win for passengers. "Yes, airfares might rise in certain markets, and yes, you may see cutbacks at some hubs," he says. "But that's not a given. And this airline is going to provide a lot of new opportunities for passengers to get where they need to go, especially internationally. There's added scope and utility that is a real plus."
There's no doubt that the combined carrier will be the first US airline with a truly global presence. According to a report from LECG, Delta serves almost all of the top 25 markets in South America and Europe, while Northwest covers more of Asia than any other US airline.
Bringing them together creates a network that matches those of Air France, Lufthansa, and British Airways.
But it's not going to be all champagne and caviar. For one thing, the new airline's combined fleet is a hodge podge of Boeing and Airbus models, considered by many to be a disadvantage. But Harteveldt downplays this, pointing out that United, US Airways, and American all operate mixed fleets.
And there are a range of integration issues that will need to be sorted out. The two airlines the good sense to lock down a common labor contract before the deal was sealed, but will now need to merge computer systems, frequent flier programs, and airport operations, a process that could take years.
Have merger questions? Delta's got answers.
Photo by Flickr user cubbie_n_vegas
