Delta-Northwest Merger Approved by Shareholders


Family at the airport terminal
Carl Unger

    Shareholders from both [[Delta Air Lines | Delta]] and [[Northwest Airlines | Northwest]]

    voted

    on September 25 to approve the two airlines' proposed merger. Each airline's shareholders offered nearly unanimous support for the tie-up. So what's next on the agenda? The airlines must receive regulatory approval from the Department of Justice, which will look at the numerous

    antitrust

    concerns surrounding this deal. There's also a pending

    lawsuit

    , filed against the merger in an effort to kill it.

    Assuming the merger passes these tests, the idea of a combined carrier could become a reality quicker than we think. With that, it's worth wondering whether or not the resulting mega-airline will actually be good for customers. Over at the

    Wall Street Journal's

    Middle Seat Terminal

    blog, it's noted that Cincinnati, in particular, may take see a sharp drop-off in flights, and a corresponding spike in prices. The airport is a major hub for Delta, so previously competing Northwest routes will likely be dropped.

    A large part of the reasoning behind this deal has always been the two airlines' complimentary schedules which, at the level of a global route network, have little overlap. However, the Cincinnati case suggests we could see route consolidation at each airline's hubs, which include [[Minneapolis-St. Paul International Airport - MSP | Minneapolis/St. Paul]], [[Detroit Metro Wayne County Airport - DTW | Detroit]], and [[Memphis Airport - MEM | Memphis]] for Northwest, and Cincinnati, [[New York John F. Kennedy Airport - JFK | New York]], [[Atlanta Hartsfield Airport - ATL | Atlanta]], [[Los Angeles International Airport - LAX | Los Angeles]], and [[Salt Lake City Airport - SLC | Salt Lake City]] for Delta.