Wednesday, November 15, 2006

US Air and Delta May Merge

The big news today in aviation is that USAir has made an offer to purchase Delta Airlines. The resulting airline would be the nation's largest--you'll recall that USAir merged with America West last year--and supporters argue that it would drive prices down. Of course, an alternative logic has it that mergers, insofar as they reduce the number of airlines and the competition between them, lead to fare increases in the long run. We'll have to see. Delta hasn't agreed to the acquisition, which would remedy the struggling airline's bankrupty concerns.

USAir means serious business. A Dividend Miles member, I received an email from the company today stating its interest in and reasons for purchasing Delta. It remains unclear what hubs the new airline would use. Would Cincinnati be phased out? Or Atlanta? After all, Atlanta's quite proximate to Charlotte, USAir's current hub. Workers at these hubs must be worried. I'm quite excited by the prospect, as hopefully my elite status with Delta would translate into elite status with USAir. Of course, unless USAir expands its first class seating--and I'm not holding my breath--there might not be room for me and the thousands of other "elites" hoarded together under one frequent flier umbrella. Is that rain I'm feeling?


Blogger Evan said...

I would guess that USAir would move its hub to Atlanta, since it's a much larger airport and has the capacity for its routes in addition to Delta's. I'm surprised the merger wouldn't be the other way around (Delta buying USAir), but then again, I'm not totally up on airline merger politics.

10:12 AM  
Blogger Ben said...

USAir is in much better financial shape since America West purchased it.

3:23 PM  
Blogger Evan said...

As I read later....

10:19 AM  

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