As everyone is probably aware, Delta and Northwest are merging to create the largest airline operator in the world. As usual, the reasons are shore up the financial operations and provide better customer service. Is this ever the result of these mergers? What is wrong with the airline industry and why can’t they operate profitably and efficienctly? Why do they keep doing the same thing, i.e., merge with competitors, and expect different results? In some fields of study, doing the same thing over and over again expecting the same result is called insanity.
So, what is it about the Delta and Northwest merger that will be different from others? Hmm, my guess is nothing. On the face of the merger, it sounds reasonable that a merged airline can reduce duplication and ensure that flights are full (perhaps not so good for the consumer since there is less competition), but this should at the least decrease expenses for the airlines. At least, that is the argument, but history tells us differently. The airlines are frequently and constantly in trouble. Maybe when we only have two carriers after all the mergers and failures, we will have a successful industry. United and Continental may be next.
