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.

[source]

Delta to start charging for the first checked bag but has more price reductions

by Jamie Rhein on

As Grant posted, Delta and Northwest just dropped that fee from ticket prices. However, in the now you have it, now you don’t score card of the just how much money will this flight cost me anyway game, Delta will start charging passengers $15 for the first checked bag. This isn’t happening today, so no need to head to the money machine for extra cash just yet.

Starting on December 5, you’ll be rolling over that fuel surcharge savings into paying for the bag when flying domestically. The second checked bag will cost $25. If you purchased your ticket on Wednesday (yesterday), you won’t be charged for the first bag, but will pay $50 for the second if your trip happens to be when the charge would go into effect.

The fee doesn’t apply to everyone though. First class, business class, SkyMiles Medallion members and WorldPerks Elite members will be able to check up to three bags–up to 70 pounds each, without paying the extra charge.

But, here are changes that add money to passengers wallets. Starting today:

  • purchasing tickets over the phone from a reservations sales representative is now $20 instead of $25
  • redeeming SkyMiles or WorldPerks award travel over the phone is also $20 instead of $25
  • the curbside check-in fee of $3 is also dropped

Delta Airlines is making these changes in order to be aligned with Northwest Airlines’ policies as part of the merger.

Another change that was implemented last week to match Northwest’s price structure is that Delta passengers can purchase better seat assignments in coach for $5 to $25. Only 10% of the seats fit into the “coach choice seats” category so its not like people who don’t want to pay extra will be left with the dregs.

In looking at these changes it seems that the intention of the merger is to do the best possible job keeping the passenger happy while making money for the airlines. The charges could have gone the other way and Northwest passengers could have found their fees going up.

[Check out this AP article for more details. Photo by Andrei Dimofte ]

What does the Delta and Northwest merger mean for me, the one with the frequent flier miles?

by Jamie Rhein on

As Grant reported, today the Justice Department has cleared the way for the merger between Northwest Airlines and Delta. Here’s a brief blurb from the Wall Street Journal that my friend at WalletPop, Tom Barlow E-mailed me.

Back in April, Grant wrote a post about why to be happy about the merger. Hmmm. I’m not sure about that given my future plans. Grant wasn’t too sure either.

I’m wondering if this merger will affect my trip to Denmark in a month. I have a Northwest flight to Copenhagen through Memphis and Amsterdam on December 2nd. My ticket (actually two of them) is thanks to 100,000 frequent flier miles (50,000 each). If my trip is messed up–the one I am taking with my daughter, I’m going to be sad. I actually have a stronger word in mind, but I’m being polite. From what I’ve read, we may not be affected. We’ll see.

As for the other Northwest frequent flier miles I have, I’ve a strong urge to book tickets now just in case. On the other hand, there are places that Delta flies that Northwest doesn’t, so perhaps I’ll hedge my bets. Frequent flier programs seem more and more like gambling ventures–or the stock market.

The time that it has taken for the Justice Department to decide if the merger is kosher or not has probably cut down the number of decisions the airlines might have to make. For example, perhaps with fewer amenities, Delta and Northwest won’t have to figure out which snacks to merge –or which type of pillows to use.

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.

Why It’s a Good Time to Fly to Asia

by Josh Lew on

With the present conditions offering little reason for airline execs to break out the expensive cognac to toast to their success, some airlines (at least those who aren’t fearing for their lives) are looking to the future. The likes of Cathay Pacific and Finnair are developing routes to Asia that they hope will become lucrative once the world economy starts playing nice. These airlines are starting early, trying to have their brands in place before the competition. Some are offering added amenities or advertising new, faster routes. Here are some of the players:

1. Finnair claims it has the shortest route between New York and New Delhi, via its hub in Helsinki.
2. Cathay Pacific, already one of the top names in Asia, is trying to compete by adding flights to India via its Hong Kong base.
3. Northwest Airlines is trying to further develop its long running service to Japan.
4. Even American Airlines announced a 12% increase in passengers on its routes to Japan and China.
5. Singapore Airlines launched an all business class service between New York and Singapore.
6. New airlines are also competing for this growing market. India-based Jet Airways is developing a route between San Francisco and Mumbai that has become favorite of business travelers.

Via IHT