NWA & Delta merge domino effect?

Question

I watched a video saying if they merge, then lower-fare careers like Southwest will not be able to compete and will be forced to merge with other airlines etc etc. Eventually, there will be like 3 super mega careers and everything will fall apart, with airlines constantly competing, routes changing, ppl losing their jobs etc. WTF will this force other airlines to merge? And could this affect me in the future?

Answer 1

small carriers with regional flights and less regulations is the answer, like is the case in UK/EU.

Unfortunately, USA insists on subsidies and regulations out the bunghole making it difficult for competition to take place naturally and drive down cost as it does in Europe.

Answer 2

You betcha.

Answer 3

it wont do much good, all the american nationals are running in the ground. Its the new ones like B6 and VX you should look after because they offer better service on modern aircraft.

Answer 4

Flying people commercially is like trying to beat the house at Vegas. If you play the game long enough, you're going to lose. Same holds true for the passenger airlines, even the older "big name" airlines that have been around forever.  Airlines are trying to cut their losses while dreaming the impossible dream about restoring some degree of profitability.  Mergers are at best a temporary solution.  My guess is that mergers will continue and airlines will continue to fold, although Soutwest and Jet Blue will be the last to go.  I see a national airline in our "future" (if we have one).  This airline, much like Russia's Aeroflot, would be controlled by the Government and commercial airlines, as we've known them, will disappear.  Ticket prices will be much, much higher and there will be a priority system.  For example, no more golf trips, exotic vacations, and business boondoggles by air.  Unless you are a medical case , visiting a sick relative, or attending a funeral - and can prove it - you may have to walk. Or wait for weeks to get a ticket.  Business travel, which can and should be dramatically reduced in today's e-world of teleconferencing etc, etc. will be a luxury only affordable by the wealthy, traveling by privately owned. aircraft.  Sounds grim, doesn't it? Well, it is.

Answer 5

Southwest is probably sacure and safe from any acquisitions.  There is not another analogous carrier in the US that flies an all 737 fleet, so there isn't another carrier that would make sense to merge with (There used to be but they already bought them all)

The current talk is that United and Continental will merge.  This will actually be a good thing as it will lower their operating expenses and allow them to compete with other carriers on a price basis.  These mergers = good for consumers.

Other mergers you will probably hear talk of are JetBlue/Frontier.  This just makes sense to me.  JetBlue is strong ont he coasts and weak in the heartland, where Frontier excels.  They both fly the same type of aircraft and have similar seniority lists.

American/UsAir.  I've heard this one but I don't believe it.  American is already too big and UsAir is still sorting out their seniority from the last merger.  I doubt this one would happen.  It doesn't make any sense to me.

All in all, the current industry makeup is outdated and inefficient.  Consolidation of a few of the weaker carriers will allow them to stay in business and keep competing.  As they gain efficiencies, they can then lower their prices to compete with the Southwests of the world.  And if you are worried about dropping down to 3 mega carriers, don't be.  American, United, Delta, Southwest, and companies like them are very large and they compete with each other very aggressively.  There are also always going to be niche carriers (Think Midwest Airlines,  and AirTran) that can carve a slice of the industry out for themselves.  As long as theres the perception that someone can make money in aviation, there's going to be an endless stream of startups.  Don't worry about the future too much.  As a traveler, this is only going to improve service and make your travel schedule more flexible.

Answer 6

I spoke to a retired NWA Captain last week. He said the Delta-NWA merger is great and should have happened a long time ago. Delta is strong in the southeastern U.S. and has European routes. NWA is strongest in the west/northwest and has Asia/Pacific routes. They are like two big pieces of a jigsaw puzzle that fit together (aside from pilot seniority issues, etc.) SWA is not a legacy carrier. There has been talk for years of probably three ultimate legacy carriers after consolidation and other market influences. Anyway, the Delta-NWA merger has synergy, as I mentioned, and could have had merit even under better financial circumstances, especially with an eye toward expansion of international routes.

Answer 7

acctually tose airlines will merge because of a high price of gasoline and low passengers so they decided to merge  i relly dont think if it affects you but if it wil,just try another better airline.

Answer 8

United and Continental may merge but I don't see that as hurting Southwest much because they are pretty much intrenched in their market and I don't see them merging with anybody.  Southwest is just about the only "healthy" U.S. carrier although fuel prices are hurting them too.   Increased fuel prices will surely raise fares and too much competition could force a few more carriers into bankruptcy.  It's not a good time to buy airline stock.

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I've personally thought for a long time, and although it seems unthinkable, the airlines may have to go back to government  regulation and subsidy like the railroads for the good of the country.   A strong economy depends upon having a good and dependable air travel system.

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