Tuesday, April 15, 2008

So Much For The "Hometown Airline"

As had been rumored for several months, two of the nation's largest air carriers--Delta and Northwest--plan to come together to create the biggest.

The basic facts of the proposed merger: Delta would be the combined airline's name, flying to 400 cities in 1400 planes. Headquarters would be in Atlanta. All hubs, including the ones in Atlanta and Minneapolis-St. Paul, would remain. The Justice Department would have to approve the deal.

Here's why they're doing it: High fuel prices. The continued hangover from the events of 9/11/01 that has nearly bankrupted the travel industry. The lousy economy in general. Not to mention the sense that they'd better do this now while a Republican is still in the White House

Northwest (sometimes called Northworst by its detractors), with its corporate headquarters in Eagan, has had a rocky relationship with the state of Minnesota. They threatened to leave the state once (in 1992), holding their breaths until the Legislature ponied up over $200 million in incentives, including a promise to stay put.

And what have they done for us? Constant labor strife (the pilots' union is opposed to the merger), bad customer service, and one of the worst on-time takeoff and arrival records in the business. (Of course, you could say that about most of the other airlines) It was all presided over by a management that knew it was running a virtual monopoly at MSP International, then got out with as much money as they could.

With the proposed merger, Northwest's Eagan headquarters would be closed, jobs would be cut, and airport traffic would suffer. There is also no guarantee the Twin Cities would remain a hub. But weep not for management. Those who aren't making the move to Atlanta would still get some nice compensation.

The local politicians, from Governor Tim Pawlenty (R) to the state's Congressional delegation--including Rep. James Oberstar (D), who is chairman of the powerful House Transportation committee--can bleat all they want about the damage a merger would do to Minnesota. But there's not much they can do, beyond hoping that the new Delta cuts them a nice check (preferably $245 million) and promises more jobs.

When and if the merger is approved (and right now that's a big if), all of the problems Northwest Airlines has caused over the years will be history. And so will the airline. Don't let the cabin door hit you in the backside.

No comments:

The 96th Oscars: "Oppenheimer" Wins, And Other Things.

 As the doomsday clock approaches midnight and wars are going in Gaza, Ukraine and elsewhere, a film about "the father of the atomic bo...