Uh oh. Another mega airline merger. But are these two giants just ‘two drunks fighting in the dark,’ (as other large mergers have been described) or creating value for the airline passenger? Delta and Air France/KLM are signing a deal to become a $12 billion powerhouse across the Atlantic.
The airlines are saying that this agreement isn’t a merger, but that it will provide transatlantic customers with better travel options, and more nonstop flights between major US and European cities. No new routes were announced, and so the already merged Delta and Northwest will continue.
Delta has also introduced a huge profit center, the dreaded $50 2nd bag fee, which will generate millions and infuriate more thousands. The rocky situation with reduced flights and diminished business travel makes this plan a desperation move….consolidation is so badly needed that even unworkable mergers will soon be cascading down the pike.