Northwest – Delta Merger

Let me first say that I am not an expert just a casual observer however I wonder if this merger will actually help consumers or business. I listened to the leaders of both airlines this morning talk about size mattering. I know that flights from Minneapolis on Northwest to certain cities are rarely discounted. In fact it isn’t unusual to see flights to neighboring states costing more than flights to Europe. I don’t think the odds are that this will improve much post merger (in fact it may happen more often).

Delta and Northwest presidents (Mr. Carp and Mr. Anderson respectively) say the combined entity (called Delta) will be more resilient. It is true they will have more destination options globally however I remain skeptical that this will somehow benefit consumers or business.

It is also sad to see the Northwest Name disappear … I know this isn’t the first time nor will it be the last time company names fall due to mergers; it happens all the time. No more Marshall Fields, Carson Pirie Scott, Dayton’s. No more Pan Am, First Union, NationsBank, and the list goes on. Maybe it is nostalgia or my getting old but it seems the more these mergers occur the more we become homogenized and somehow the history and dialogue about the merged firm disappears as if they were never there.

Cities are a good example of this homogeny – just walk down Broadway in New York to see the same stores you see in your suburban mall. Cities lack personality and diversity. Do we need another Appleby’s or Starbuck’s? Will the new Delta become the Starbuck’s of the sky? Time will tell.

From an IT perspective this type of merger creates a ton of work. Systems, brands, and processes take time and energy to consolidate. No doubt this will take place over many years and it will results in the elimination of jobs (or shall I say it will result in “merger synergies” - it sounds less personal this way).

All we can do is watch and learn…Happy flying.