A new chapter for Delta
Utah Gov. Jon Huntsman Jr., has gone so far as to speculate that the merger may result in a larger hub to support the combined airlines, which will operate under the Delta name.
But the big question is whether the $17.7 billion merger, yet to be approved by regulators, will produce sufficient savings to overcome surging fuel prices. Stock in Delta and Northwest fell Tuesday after a merger that analysts say could make the airline a global aviation powerhouse. Meantime, crude oil futures on Tuesday climbed in New York to its highest level yet, $113.99 a barrel.
Another challenge is Northwest Airlines' aging fleet. The average age of its 350-plane fleet is one of the highest among major carriers, The Associated Press has reported.
Much will depend on the economy and the future of oil prices. Consumers, who face rising food and motor fuel prices, let alone those in risk of losing their homes in the mortgage crisis, have been increasingly reluctant to spend, according to new consumer reports. Consumer spending accounts for two-thirds of the nation's economic activity.
On the other hand, the merged airlines will give consumers more fare and route options, which might encourage travelers to bite the bullet and book more trips.
Delta Air Lines also considered a merger with United Airlines, which is based in Chicago. But many Utah officials feared such a merger would result in the elimination of the Salt Lake hub, since United operates a major hub at Denver International Airport. Earlier this year, a delegation of Utah officials, which included key state lawmakers, visited Delta officials in Atlanta to discuss how a merger might affect Salt Lake International Airport. The Utah Legislature demonstrated the state's commitment to Delta by giving it a $5.7 million tax break. Lawmakers also appropriated funds to build a TRAX line to the Salt Lake International Airport, eliminating the need to use airline revenues for this purpose.
Obviously, Utah leaders believed much was at stake in the merger discussions. By and large, this marriage should be good news for the Intermountain region. Much will depend, however, on economic conditions as the nation emerges from what appears to be a recession.
Recent comments
That $5.7 million that Earl talks about may have saved Delta from...
And.. | April 16, 2008 at 12:49 p.m.
Frank, I'm curious how you come to the conclusion that reduced...
Earl | April 16, 2008 at 10:48 a.m.
reading the article "Merger Creates Concerns" I'm beginning to wonder...
After... | April 16, 2008 at 7:37 a.m.
- 6.0 quake in China 10:43 a.m.
- Big Ben celebrates 150 years 10:42 a.m.
- North Korean cyberattacks? 10:39 a.m.
- China raises death toll from riots 10:37 a.m.
- 'Smart Home' block party in Provo 10:35 a.m.
- Man injured in Taylorsville stabbing 10:22 a.m.
- Dispose of old TVs 10:16 a.m.
- Man killed in motorcycle crash 10:16 a.m.
- Man pleads guilty in fatal crash 10:02 a.m.
- 16 killed in Somalia 9:23 a.m.
- Jazz brass debate Millsap match
- LDS seminary principal arrested
- 2 men cited on LDS plaza
- Jazz finances not quite so bleak
- HBO defends U. logo use in 'Love'
- Reactions on Boozer speculation
- Cash for Clunkers to get rolling soon
- Utahns among Texans' investors
- Man spots his stolen car
- Jazz rookies quiet Thunder youngsters
- LDS seminary principal arrested
227 - Jazz brass debate Millsap match
149 - Bronco collecting a galaxy of recruits
141 - Jazz talking Boozer trade?
138 - Blazers may offer Millsap a contract
124 - 2 men cited on LDS plaza
99 - Stadium of Fire flag burning was fake
95 - Fairness of BCS debated
81 - Chaffetz eyes challenging Bennett
76 - Letters: Single-payer system best
75
By now you've probably read about the investigation that showed just how...
Sen. Scott Jenkins was name-checked by Jay Leno Monday night during his...
to Mr. 9:52 Let's see if I have this correct. In order to show my compassion...
If this man was a teacher and wasn't Mormon the people on these boards would...
GM holds many US Military contracts, building vehicles such as the Humvee. ...
Does this mean they will be going back to the Countries they came from?
DUH! we do not tolerate inappropriate relations between adult males and...
53 Banks have failed this year, thousands more, including Utah banks, are on...
did a lot of good for a lot of folks. Unfortunately, his life will be forever...
Has Movsisyan said anything complimentary about RSL fans? If he has, I...
I won't comment at all on this case, since I don't know the details. But I'm...
If all the talk about moving Boozer is serious, then yes, Paul made a...


