Airline Mergers

Everyone seems to be concerned about the merger of Nortwest and Delta Airlines. I realize that
everyone's first concern will be the lack of free market forces that drive down prices for airline tickets.
Looking at the merger, it may in fact be a good thing. Looking at the Delta infrastructure, they are based in
Atlanta. Northwest, on the other hand, is based in Minneapolis. The new airline can look at routes and be able to
service the most profitable routes and drop the others. The shear size of the new airlines will give them greater control when they negotiate with vendors. This is one of the first mergers in a string of many to follow. Who knows maybe someday the US will have one national airline subsidized by the government.
 

What did you think of this article?




Trackbacks
  • No trackbacks exist for this post.
Comments
  • No comments exist for this post.
Leave a comment

Submitted comments are subject to moderation before being displayed.

 Enter the above security code (required)

 Name

 Email (will not be published)

 Website

Your comment is 0 characters limited to 3000 characters.