Domestic

The Delta/Northwest Merger: Marriage Made in Heaven or ...

In joining with Northwest, Delta promises to become the world's biggest airline. But the record of past airline mergers warns of pitfalls that Delta—and you—will need to watch out for.

Can sons and daughters of the South and of Minnesota find happiness together in the worldwide skies? We'll find out over the coming months as Atlanta-based Delta Airlines absorbs Minneapolis-based Northwest. The end result, according to officials: A "new Delta" will replace American as the world's largest global airline.

On paper, the marriage looks good (mergers always do... on paper). The two lines have complementary routes and major opportunities to consolidate back-room operations. But there are potential pitfalls too.

The Wall Street Journal recently analyzed what they are, and which would most affect travelers on the two lines. Here's a digest of where this in-flight marriage could suffer a bumpy ride:

--Bookers, Beware. Airline reservation systems are incredibly complex. Trying to merge them will be no picnic, says the Journal, although the job will be easier in that DL and NWA have done code sharing for some time. The problems that could arise were illustrated in the US Airways/America West merger, says US Airways CEO Doug Parker. "Reservations were lost, flights were delayed, and customers fumed in long lines," he remembered. It got to where US Airways needed separate check-in lines for reservations made on each system.

Seniority Snafus. Each airline grants compensation and perks to its workers based on length of service, but when organizations mesh, somebody's sure to lose out, often leading to collapsing morale and poor customer service. Disputes can even lead to walkouts, as happened when American Airlines acquired Reno Air. Both pilots' unions have accepted a common contract, but what will happen among gate personnel, baggage handlers, and other ground workers, not to mention flight attendants? Northwest's are unionized, Delta's are not.

Gate Debate: Phillips points out that even the most basic steps such as reassigning gates and counters can generate confusion, as customers find their old familiar places have moved, possibly to a new terminal. Even if you know where to go, will your cab driver?

One reason for hope: Delta CEO Richard Anderson has led both companies. He presumably is in the best position to know where both flocks of ducks are and how to get them in line for takeoff.

A Resource for Frequent Flyers

One area definitely affected by the merger will be the airlines' frequent flyer plans, Delta SkyMiles and Northwest WorldPerks. Members will want to get the most out of the miles they've accumulated.

That's a common concern of members of all airline loyalty programs, and one about which we at First Class Flyer get a lot of reader questions. These in turn have led to a neat Special Report we've prepared called Airline Miles to Europe. It focuses on mileage programs, and includes no fewer than 70 highly useful strategies to extract maximum benefits from them--strategies that work going to Europe or anywhere else. (For a partial listing of what's covered, see the announcement below this article.)

One nice thing about this useful report is that you can check it out at no risk. We don't even charge your credit card for 14 days, and if you're ever dissatisfied with it, we'll refund your entire purchase. Click here and we'll tell you more.