NORTHWEST AND DELTA
What merger?
Everybody keeps talking about the NWA/Delta "merger." I've seen this a few times in my working life, and what is promoted as a merger really gets to be a takeover by the stronger of the two companies.
I'm retired from the BN Railroad and watched it happen, and my fraternal insurance company "merged" with a stronger company. Guess which companies ended up with all the true power posts and whose business policies became the norm.
The same will happen with the airline merger. It will also give the companies a great opportunity to go back on their labor and other agreements. I believe NWA wasn't very good at keeping its agreements with the Metropolitan Airports Commission and the state of Minnesota.
The merging of seniority rosters can be a sticky wicket, and a lot of employees will feel they have lost, once again. Delta won't be too willing to keep NWA agreements that don't fit into its money-saving plans. Minnesota airline jobs are going to be lost down the road. Also, service will disappear and costs go up.
So keep your eye on the dogfight and see which dog comes out on top.
VERNON DRAKE, STAPLES, MINN.
Prepare for takeoff Let's see: Fares up, competition down. Fewer routes, more job layoffs. The metro remains a hub ... for now. Shareholders hit, and Minnesota loses yet another corporate headquarters. The combined airline faces huge merger-related costs in the middle of an economic downturn. But the NWA board and top execs stand to cash out big.
Sounds like a go.