Northwest's Merger With Delta Airlines

It's the deal of the moment!

Northwest's merger with Delta will create the largest airline in the world. The deal has the potential to create a strong competitor in the airline industry or one big loser. Only time will tell which one it will become. Most people are concerned about ticket prices while others care about better service and frequent flyer miles. I think what's important to remember is mega deals like this take a lot of time to fully come together, especially with such different corporate cultures.

When I started at Turner Broadcasting, it was just a few months after the announcement of the Time Warner merger. There was so much excitement in the company and also a lot of uncertainty. The Time Warner merger with AOL was suppose to create the largest media conglomerate with all these high expectations. Well those expectations kind of fizzed out and a whole new set of problems were created. And let's not forget about the billions of dollars of corporate debt, however the company started to slowly turn around.

By combining Northwest and Delta, we are
building a stronger, more resilient airline that will be a leader in providing customer service and value. Our combined airline will offer unprecedented access to the world, enabling you to fly to more destinations, have more flight choices and more ways than ever to earn and redeem your WorldPerks miles.

- Bob Soukup

Managing Director, Northwest Airlines WorldPerks

During the first Time Warner merger, hundreds of people were laid off, and it was the beginning of the end of the "Turner Culture". The "little company that could" feeling that was so unique to Turner slowly eroded away as Time Warner and later AOL reorganized the company. Time Warner's stock price hasn't come anywhere near it's pre-merger price. Employees who bought stock before the mergers took place got a really bad deal.

My hope with the Northwest/Delta merger is that prices stay competitive and both airlines find a way to successfully merge the employees to make for a pleasant travel experience. One of the many things that must do is keep the front line employees happy and motivated. There is nothing like an unhappy flight attendant or a grumpy ticket agent handling your customers. It's also going to take a little finesse to win over Northwest's customers. It will be interesting to see how things play out.