Delta and Northwest Airlines Merger
Posted: Tue Apr 15, 2008 1:21 amBecause of my sincere and established interest in Northwest Airlines, I am committing myself to making an effort to ensure that this thread stays current with the developments of the Delta-Northwest Airlines merger story. If anyone has any tops, links, or new information, I would love to hear from you. Also, if anyone notices any errors in the information provided (which, as developments occur, this could happen), please, let me know and I will be glad to correct them.
Sunday, April 20th, 2008
Between my foot aching with an arthritis flare-up after my workout and losing the first edit I was working on for this article today, it is fair to say that I was already feeling a bit edgy. Sorting through news articles related to the proposed (inevitable?) Delta-Northwest Airlines merger did nothing to improve my mood.
Most of the news seems rather grim, and you can find relevant articles here, here, and here.
The first article points out the weak plans Richard Anderson (CEO of Delta) has for a post-merger airline carrier. Most of the plan he laid out recently seems to involve generating profit from downsizing (a filthy idea if you are just trying to save overhead without actually trying to be a more efficient company, because the overhead saved usually comes from lost jobs and ruined lives) and from raising the cost of services offered (well, that was sort of inevitable given the rise in fuel prices).
The second article talks about the severance package Doug Steenland (CEO of Northwest Airlines) is looking to receive if the merger finalizes. Honestly, I don't have anything against people being rich, but I have always felt that 'golden parachute' arrangements for executives is detrimental to companies and tantamount to legalized thievery, especially when many of your former employees are looking to lose their jobs with little or now financial parachute at all.
This brings us to the third article, which focuses on the impact the merger would have on the Twin Cities. Minneapolis-St. Paul is rather near to us in North Dakota, and it is the first stop when we fly out of Minot to anywhere. The loss of an iconic business relationship, status, jobs, and income is a really hard blow, and will probably have a ripple effect far beyond just the confines of the Twin Cities.
All in all, unless you are a Delta executive, shareholder, or pilot, not much about this deal seems good. One amusing glimmer of news came from the small suggestion that American Airlines may make their own bid for Northwest Airlines (in this article here. That still isn't great news, but anything that rocks the boat at this point is of interest to me.
At the end of the day, it does not appear there is any realistic way Northwest Airlines will remain an independent carrier. I would say the last possibilities of that happening are: 1) If the proposed merger falls afoul of anti-trust laws (not likely, as there seems at least tacit approval thus far from the government for a merger; 2) If Northwest Airlines shareholders stage a coup (not likely, either, as the major shareholders seem to be on board with the merger plan); and, 3) If the Northwest Airlines pilots stage a coup or hold a successful strike impeding the merger (marginally possible, as the NWA pilots are getting the shaft over this deal and royally PO'ed about it). Well, not much more to say or do other than keep an eye on things as this mess develops. I can only hope that when I return home this summer it is on an NWA aircraft.
Tuesday, April 15th, 2008
So, browsing the news at BBC this afternoon, I came across the following article here.
While there is probably some time left before this deal moves through, I have to say I am not happy with the proposed implementation of the merger between Delta and Northwest Airlines.
Mainly, I find my unease to be focused around the fact that I am a loyal Northwest Airline's customer and avid fan of the Northwest Airlines brand. To see that the merged carrier company company would simply be called, "Delta", leaves me feeling as if my favored company is simply going to disappear, and I must now be saddled with a company for which I have no investment and history with.
In addition to that, I am concerned about what will become of Minot International (the airport servicing my "home" community). At Minot, we are solely serviced by Northwest Airlines, and have had Northwest Airlines as a part of our community for decades upon decades. Will we still receive the same service as always? Will the transition into the merged company cost our community jobs or service quality?
Furthermore, what becomes of my miles saved up over two years of international flying with Northwest Airlines? I have an established relationship as a customer with Northwest Airlines, and have come to be familiar with certain services and benefits that I would be loathe to change to another company or do without.
At the end of the day, I realize that I am just a speck of dust in the world compared to the peoples and pressures that shape the business world at the level of major airline carriers. I feel helpless and despondent. Perhaps the best analogy would be how a sports fan feels when he learns that his favorite club is about to change cities or names. It kind of takes the wind out of you. Barring some miracle of modern business, I guess the only thing I will be able to console myself with is in buying as much Northwest Airline's merchandise as possible to stockpile and savor in the future, and also continuing to download and use NWA-liveried aircraft on MSFS.
Feeling the wrong shade of blue,
Darrin
EDIT 1:
I found a more extensive article on the matter here Also, I have changed the name of this thread to reflect the topic overall (the potential Delta-NWA merger) versus simply my take own it (the death of something cherished).
NEWS LINKS
(ordered by date and sequence of addition)
2008.04.15 - 01
2008.04.15 - 02
Sunday, April 20th, 2008
Between my foot aching with an arthritis flare-up after my workout and losing the first edit I was working on for this article today, it is fair to say that I was already feeling a bit edgy. Sorting through news articles related to the proposed (inevitable?) Delta-Northwest Airlines merger did nothing to improve my mood.
Most of the news seems rather grim, and you can find relevant articles here, here, and here.
The first article points out the weak plans Richard Anderson (CEO of Delta) has for a post-merger airline carrier. Most of the plan he laid out recently seems to involve generating profit from downsizing (a filthy idea if you are just trying to save overhead without actually trying to be a more efficient company, because the overhead saved usually comes from lost jobs and ruined lives) and from raising the cost of services offered (well, that was sort of inevitable given the rise in fuel prices).
The second article talks about the severance package Doug Steenland (CEO of Northwest Airlines) is looking to receive if the merger finalizes. Honestly, I don't have anything against people being rich, but I have always felt that 'golden parachute' arrangements for executives is detrimental to companies and tantamount to legalized thievery, especially when many of your former employees are looking to lose their jobs with little or now financial parachute at all.
This brings us to the third article, which focuses on the impact the merger would have on the Twin Cities. Minneapolis-St. Paul is rather near to us in North Dakota, and it is the first stop when we fly out of Minot to anywhere. The loss of an iconic business relationship, status, jobs, and income is a really hard blow, and will probably have a ripple effect far beyond just the confines of the Twin Cities.
All in all, unless you are a Delta executive, shareholder, or pilot, not much about this deal seems good. One amusing glimmer of news came from the small suggestion that American Airlines may make their own bid for Northwest Airlines (in this article here. That still isn't great news, but anything that rocks the boat at this point is of interest to me.
At the end of the day, it does not appear there is any realistic way Northwest Airlines will remain an independent carrier. I would say the last possibilities of that happening are: 1) If the proposed merger falls afoul of anti-trust laws (not likely, as there seems at least tacit approval thus far from the government for a merger; 2) If Northwest Airlines shareholders stage a coup (not likely, either, as the major shareholders seem to be on board with the merger plan); and, 3) If the Northwest Airlines pilots stage a coup or hold a successful strike impeding the merger (marginally possible, as the NWA pilots are getting the shaft over this deal and royally PO'ed about it). Well, not much more to say or do other than keep an eye on things as this mess develops. I can only hope that when I return home this summer it is on an NWA aircraft.
Tuesday, April 15th, 2008
So, browsing the news at BBC this afternoon, I came across the following article here.
While there is probably some time left before this deal moves through, I have to say I am not happy with the proposed implementation of the merger between Delta and Northwest Airlines.
Mainly, I find my unease to be focused around the fact that I am a loyal Northwest Airline's customer and avid fan of the Northwest Airlines brand. To see that the merged carrier company company would simply be called, "Delta", leaves me feeling as if my favored company is simply going to disappear, and I must now be saddled with a company for which I have no investment and history with.
In addition to that, I am concerned about what will become of Minot International (the airport servicing my "home" community). At Minot, we are solely serviced by Northwest Airlines, and have had Northwest Airlines as a part of our community for decades upon decades. Will we still receive the same service as always? Will the transition into the merged company cost our community jobs or service quality?
Furthermore, what becomes of my miles saved up over two years of international flying with Northwest Airlines? I have an established relationship as a customer with Northwest Airlines, and have come to be familiar with certain services and benefits that I would be loathe to change to another company or do without.
At the end of the day, I realize that I am just a speck of dust in the world compared to the peoples and pressures that shape the business world at the level of major airline carriers. I feel helpless and despondent. Perhaps the best analogy would be how a sports fan feels when he learns that his favorite club is about to change cities or names. It kind of takes the wind out of you. Barring some miracle of modern business, I guess the only thing I will be able to console myself with is in buying as much Northwest Airline's merchandise as possible to stockpile and savor in the future, and also continuing to download and use NWA-liveried aircraft on MSFS.
Feeling the wrong shade of blue,
Darrin
EDIT 1:
I found a more extensive article on the matter here Also, I have changed the name of this thread to reflect the topic overall (the potential Delta-NWA merger) versus simply my take own it (the death of something cherished).
NEWS LINKS
(ordered by date and sequence of addition)
2008.04.15 - 01
2008.04.15 - 02
). The guys their are resigned to the fact that it was the lesser of two evils.
