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.
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.


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