Who Wins and Who Loses in Delta-Northwest Merger?

by Josh Lew on

Gadling has been closely following the merger between air travel giants Delta and Northwest Airlines. The marriage of the two carriers was recently approved by the Department of Justice. But what does this mean for the people on the ground and in the air? Aside from seeing new color schemes on the staff and aircraft, there are all those frequent flier miles Northwest patrons have been saving. Jamie recently wrote about what to do with them. Customers stand to pay higher prices when the merger takes hold. Delta will be in a more dominant position than before. That usually means higher prices.

But what about the staff of Northwest Airlines? Here in Minneapolis, strikes by Northwest employees have been commonplace over the past few years. On the positive side, the merger will mean that Delta, which has recently been more stable than Northwest, will be in control. But job cuts are probably coming. Employees may find themselves cut from the company because their position has become redundant. Northwest will most likely see job cuts at their hub in Minneapolis, while Delta’s second tier hub in Cincinnati will lose out to Northwest’s Detroit base. So the airline’s employees will be working for a more stable company, if they can survive the job cuts. Because Delta has the upper hand in the whole process, most watchers expect Northwest workers will bear the brunt of the lay-offs.

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Salvation: Northwest and Delta to drop fuel surcharges

by Grant Martin on

During that whole oil debacle this past summer, airlines were levying fees left and right to recoup some of the massive losses they were incurring to pay for jet fuel. Charges included paying for checked bags, preferred seats and worst of all, heavy fuel surcharges.

The addition of fuel charges when oil was expensive made disappointing sense to most, but what really irked many frequent flyers was the inclusion of award tickets in these fees. To most, an “award” ticket booked with miles should be as free as possible — after all, we earned these miles with our cold, hard cash and time, right?

Now, as oil has returned to normal levels, many analysts (including myself) predicted that the airlines would keep the surcharges in place just because they milked some cash out of the passenger. But to our surprise, Virgin Atlantic, British Airways and many others reversed their fees and returned the fare structures to normal.

Today, Northwest and Delta followed suit. Now when booking overseas and domestic reward tickets, the $20 – >$100 fees that formerly angered so many passengers is gone. The best part of the change is that for some, I’m hearing the change is retroactive. So if you booked an award ticket in the last month or so and had to pay the fee, you can call and get your money back. This may be one of the first times ever that I have called the airlines generous.

Your mileage may vary on the return of your fees (depending on who you talk to and what your “status” is,) but it’s worth a ten minute phone call, right?

You can read the full details on Delta’s website here.

So long, Northwest. Department of Justice approves merger

by Grant Martin on

For those of you who were holding onto one last shred of hope that Delta and Northwest might not merge, you can go ahead and flush that down the toilet — the Department of Justice just approved the merger, saying:

“After a thorough, six-month investigation, during which the Division obtained extensive information from a wide range of market participants–including the companies, other airlines, corporate customers and travel agents–the Division has determined that the proposed merger between Delta and Northwest is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition.”

Not that we weren’t already heading full tilt into the merger. Just this week the two airlines integrated upgrade policies (now one can be upgraded on the other based on elite status), and the buzz about NW flight attendants getting fitted for Delta uniforms has already popped up in a few places in the underground.

So to speak, this message from the DOJ just puts the final nail in the coffin. Over the next twelve months you’ll slowly start seeing red tails disappear from the tarmac to become red white and blue, you schedules out of Atlanta, Detroit, Minneapolis and Cincinnati will get rejiggered and your boarding passes will suddenly carry the wrong name.

So long, Northwest Airlines. It was a fun ride while it lasted.

Michael Phelps flies Northwest

by Grant Martin on

Another boring flight to the East Coast suddenly perked up when I looked up from my iPhone on Monday’s Northwest flight to Baltimore and saw Michael Phelps standing in front of me. Apparently, after everyone had boarded the plane the Olympic swimmer was snuck on to prevent any swooners from interfering.

Sporting a Baltimore Ravens jersey and Tigers baseball cap, Phelps quickly darted over to seat 2D, the seat right in front of me and hunkered into the corner — only myself, my intern and the guys sitting behind me seemed to notice.

Naturally, being the kind, respectful passenger that I am, I kept to myself and didn’t raise a fuss. I only spent, oh, about 70% of the flight peering through the seat crack to see if Phelps was smashing atoms with his bare hands or solving the world’s economic woes with an abacus.

On pushback, Phelps immediately put away his Blackberry and switched gears to this month’s Esquire for about 60 seconds before falling fast asleep. Throughout the flight he only moved a few times to close the window shades before landing in Maryland. Once phones were allowed again he immediately jumped on the line to discuss the six flat panel TVs that were being installed in his place then bolted out the front door on arrival — before I could get a proper photo.

I suppose as a celebrity you try to keep a low profile when on the road, or else nutjobs like Gadling Bloggers make a big ruckus and try to take your picture. Really I was most surprised to just see him on any old Northwest flight after watching him on television last month — or as our friend and contributor Matthew Firestone put it:

“I find it hard to believe that Michael Phelps flies in an airplane – I heard he just dives into the open sea and follows oceanic currents around the globe.”

Farewell, Michael Phelps. Sorry for taking your picture on the plane, but Gadlingers wouldn’t have believed it was you if I didn’t have evidence.

Jumbo Jets Disappearing from the Sky

by Josh Lew on

Jumbo jets, like Boeing’s classic 747, are a bit like that Buick your grandpa used to drive. They are sizable enough that you don’t have to concern yourself too much with what is going on outside. What’s a little turbulence to such a massive beast? What’s a six hour flight when you can stand up and actually walk around? (I was a little kid last time I rode in “the boat,” but you get the analogy).

High fuel prices have been grounding more and more of these large aircraft. And those who fly frequently are none to happy about it. Aside from a smoother ride, larger aircraft offer more seating options, more lavatories and more overhead space. If you are flying from New York to L.A. or Atlanta to Seattle, a little extra room can make a big difference.

Among major carriers, American and Delta still offer the most jumbo jet flights at more than 50 per day. However, wide-bodied planes are nowhere to be found on Northwest‘s and Continental‘s domestic routes. According to the industry, large aircraft will account for less that 1% of air traffic by the end of this year.

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