This upcoming merger between Delta and Northwest will create the world’s largest airline, offering service to more than 375 destinations worldwide in 66 countries.
At first glance it may seem this streamlining will end up with savings the combined airline can pass on to its passengers, but that may not be the case.
Details of the Merger Between Delta and Northwest
Though both airlines are calling it a merger, in reality, Delta is buying out Northwest and the two will then operate under the flagship Delta name. Northwest, currently based out of Eagin, Minnesota, would become a wholly owned subsidiary of Delta during the process.
It will still be another 15 to 18 months before the merger is finalized, so passengers can expect to still book and fly under the Northwest name on certain routes well into 2009. According to a press release issued by Delta on October 29th, 2009, it plans to introduce its brand into the Northwest system starting the spring of 2009, including its Richard Tyler-designed uniforms and on-board amenities.
The airline says it expects to introduce codesharing on all Northwest routes by the end of 2008, creating more opportunities for connections and routing. Plans are for a fully consolidated worldwide flight system in advance of opening up bookings for the summer 2009 travel season.
Delta says it will also consolidate its Skymiles and Northwest’s WorldPerks programs into one loyalty program, with the changeover at a one-to-one ratio. This means a member with 5,000 miles in one and 10,000 miles in another will end up with 15,000 miles when the programs are combined.
What this Means for Budget Travelers
In arguing for the merger, the companies have said that combined, they can cut $2 billion a year in expenses. Some of this will be in the streamlining of routes and the combined use of technology and supplies. But there’s no indication that any of that will trickle down into lower prices on airfare, or the repeal of recently added fees on things like checked bags.
In fact, it’s quite possible the streamlining of routes may reduce or eliminate competition, which would result in no reason not to raise market value on some routes.
The merger may also result in reduced flights on certain routes, meaning fewer seats available. This means less incentive for Delta to offer discounts, and frequent travelers may find it harder to redeem mileage earned for air awards.
The Current Bottom Line of the Delta - Northwest Merger
Customers should continue to check-in and do business directly with the airline operating their flight just as they did before the merger. Delta will continue operation of the airlines’ separate web sites, as well as the two airlines’ reservations systems and loyalty programs.
As operations are streamlined, expect more codeshare flights and possible elimination of smaller to mid-sized market routes as the airline decides which routes will produce the most profits. This is when some issues may crop up regarding tickets already booked for certain routes.
Passengers currently holding tickets for either airline shouldn’t expect any immediate problems, but it is advised they call the airline they booked with a few weeks prior to any flight to make sure there hasn’t been any changes or cancelations.
Whether any of the savings the airline says it will get from the merger will trickle down into savings for its passengers, that remains to be seen.
Michelle Snow - Michelle Snow been a freelance journalist and photographer for over twenty years, specializing in travel and entertainment. She got her ...
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