These are scary words coming from airline analysts. A couple of days ago they were uttered as what I believe is the real reason that Delta and Northwest want to merge — to relieve competitive pressures.
In other words, passengers will get the brown end of the stick.
For all the glorious talk about how this merger is for the benefit of customers, how this merger will save jobs, how this merger will counter high jet fuel prices and how the marriage of these two wounded airlines would make them stronger, the real reason is to “relieve competitive pressures.”
Translation — a merger makes it easier for the airlines to raise its prices.
Every expert that I have hear from says that the $1 billion estimated cost of the merger in lawyer, banking and securities fees pose as significant risk to the airlines. However, once the legal decks are cleared and the airlines have free reign to trim schedules and merge management, there will be an opportunity to recoup these costs by “relieving competitive pressures.”
Some writers are trying to find a sliver lining in this proposed corporate marriage. But I can’t find much to make me happier as a consumer.
For anyone who is confused by all of this merger talk and who wants to know who is dating whom in the airline corporate world, here is a handy compatibility and bankruptcy chart put up last month that seems to still be accurate.
