Welcome to the world’s largest and potentially most troubled airline New Delta
At a time when people should be considering how to reform their models – Delta and Northwest have decided that the world is better off with a large monolithic airline. Frankly this is good news for just about everybody else but Delta+Northwest Passengers and Staff.
For British – the new airline will adopt a moniker of Delboy.
The aim of the new airline is nothing short of worldwide domination with Air France/KLM group taking a stake and the Skyteam Alliance effectively becoming the AFKLDLNW alliance.
The rest of the US market will see rapidly rising air fares. Thanks a lot. So lets speculate a little at what is going to happen in the next year.
Dismantling of the CVG and MEM hubs. Restructuring of the regional business reducing ACMI flying. Bruising competition at certain key markets. The one benefit will be more International service.
Personally I think this will end badly for the stock holders. Sure the Hedge Funds will win in the near term. But the regular stock holders will be looking badly at this in 3 years time.
Could this be the end of Alaska Airlines Independence?