A new chapter for Delta

For Utahns, Delta Air Lines' merger with Northwest Airlines was good news. Delta will maintain its hub at Salt Lake International Airport, which is important in terms of retaining jobs, enhancing numbers of direct flights for passengers and improving access to Asian markets now served by Northwest.

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.