The merger agreement between Delta Air Lines and Northwest Airlines, a $3.1 billion deal, would create the world's largest carrier -- and could encourage other airlines to follow a flight path to decreased competition. Whether or not this makes business sense for the airline, it won't be good for consumers. ...
[Kevin Mitchell of the Business Travel Coalition] argues that there are three very narrow and money-oriented groups arguing for legacy airline mergers in the United States -- individual hedge funds that do not understand industry fundamentals but had made large speculative gambles on consolidation; a handful of very senior airline executives who have not been able to generate substantial profits but would realize multimillion-dollar payouts in most merger scenarios; and Wall Street firms, lawyers and consultants eyeing big merger fees.
There are many reasons why airline mergers of this magnitude would be bad for passengers, not the least of which would be fewer available seats and the possibility of fewer stops at regional airports.
Given what's been going on with higher gas prices and record high costs for oil, it is understandable that people would harbor misconceptions about airline mergers -- including the belief that it would be part of the natural industry shakeout process, or that airline mergers would be a necessary response to escalating fuel costs and a downturn in the business cycle. But combining losses just means a combined loss. Many experts argue that if a legacy merger can't be justified when revenues, cash flow and access to capital are extremely strong, then it certainly cannot be justified now. ...
It is impossible to look at a potential merger between Delta and Northwest in isolation, and without looking at the possibility of an entire web of consolidation efforts. Fewer choices do not make for more competitive prices. Buckle your seat belts. The flying public is going to be in for a long ride.
BUFFALO NEWS, APRIL 24
Still learning the lessons "Shots fired at Columbine High School." Those words reverberated through the Denver Post newsroom nine years ago ... At that moment, there was no way any of us could comprehend what lay ahead. The carnage, the anguish, the endless questions.
Nine years later, we're still faced with many of the questions even as we've helplessly watched the same eerie scenes of violence play out in other serene, often bucolic, locations, such as Bailey and Blacksburg.
