Will the Delta-Northwest merger be permitted?

The merger between Delta and Northwest will create the largest airline in the world.  Both companies are struggling financially and through a steady loss of customers and government security, but will the two companies be allowed to merge and create one large, super airline?

Much evidence suggests that the company will not be able to merge just because of the sheer size of the two companies.  If the merger were to go through, it would be like Pepsi and Coca-Cola merging only to leave the small independent soda makers to try to fight through a monopoly.  I doubt very seriously that the companies will be able to turn a profit even when working together, neither of them suffers severely from competition.

Other than the banking industry, no other industry besides airlines has seen this much consolidation.  After 9/11, new security measures and a scared public has sent people away from airlines and back to ground transportation.  High fuel costs disproportionally hit airlines which only make a few hundred dollars each flight from passengers, the majority of their income comes from extra services and mail carrying.

I see little to gain from a merger between these two mega giants other than less pilots with a job and higher ticket prices.  There will be little regional competition on other airliners as these two control much of the domestic flights in the United States.  At this rate, I don’t think this merger stands a chance with the monopoly regulations in place.


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