Web: www.thetravelstrategist.com -- E-Mail: fish@flyingwithfish.com
25/09/2008 – The Delta Airlines & Northwest Airlines Merger : The Shareholders Vote Today
By the time many of you read this Northwest Airlines' stockholders will have voted on the proposed merger with Delta Airlines in New York, and Delta Airlines' shareholders will have voted on the merger with Northwest Airlines in Atlanta.
The recent recalculations of the merger show a potential for the two airlines to save approximately US$2-billion. With the merger a hot topic in both Delta and Northwest Hub cities, the two airlines have promised to keep all their hubs operating if there is a merger, giving the 'new combined airline' a total of six hubs, as well as a number of significant 'focus cities' to maintain their operations.
review of the merger is pending, and will be released after the share holders vote to merge the two airlines. The merger of the to airlines will create one airline flying under the name "Delta Airlines" and the long storied history of Northwest Airlines and its bright red tails will fade into our memories.
This merger is supposed to create the world's largest airline, eclipsing American Airlines' parent company, AMR. AMR is currently the world's largest airline operating more than 900 aircraft. This information tends to look quite incorrect when you look at the actual 'in-service' fleet aircraft numbers. Even after the merger the combined Delta/Northwest fleet will still be quite a bit smaller than AMR in terms of post-merger 'Delta owned aircraft.'
Currently AMR's fleet consists of 922 aircraft. 635 are flown by American Airlines with an additional 287 operated by American Eagle. Going by the current fleet size numbers, a combined Delta Airlines & Northwest Airlines fleet will consist of 716 aircraft. Delta brings 452 aircraft to the merger and Northwest brings 264 to the merger.
So while the merger press sheets stress a larger fleet that AMR, even if you add in Delta's subsidiary carrier Comair's fleet of 138 aircraft, the total aircraft still remains at 854 aircraft for Delta and 922 for AMR.
If the shareholders vote in favour of the merger, there are many hurdles ahead for the two airlines merge. The huge hurdle is merging the combined pilots Unions. The pay rates are quite different between the carriers. The seniority between the two airlines is different. Even the aircraft and routes the airlines fly are quite different.
The different between airlines and routes is not only an issue for sorting out Union and Pay seniority; it also gets tricky when combining the fleets and route structures. Delta Airlines flies an all Boeing fleet, while Northwest flies a combined Boeing and Airbus fleet.
In creating parity between the two airlines Pilots' Unions, the 'best guess' is that a Delta 777 captain who flies long haul would be equal to a Northwest Airlines 747 captain who flies long haul. After that a Delta 767 captain who flies long haul would equal that of a Northwest A330 captain who flies long haul.......but wait....
Delta operates the 767-300 domestically and on long-haul international routes, as well as a 767-400 both domestically and internationally while Northwest Airlines only flies the A330 on long-haul international routes, including routes over the Pacific to service the Asia market. How will these line up?
In fact, the only common aircraft Delta and Northwest both operate is the Boeing 757-200 (Northwest also operates a 757 sub-fleet in Japan operating of their hub at Tokyo's Narita, as well as the Boeing 757-300).
Just to further complicate things, outside of the passenger fleet, Northwest Airlines also operates a complete fleet of 747 cargo aircraft.
The pilots Unions seem to be on-board with this merger, at least in public, so hopefully they can work these issues out.
On the operations side, Northwest Airlines has a long and intertwined history with KLM Royal Dutch Airlines. The history between these two airlines is so intertwined that they have often alternated aircraft on routes, chosen to fly compatible fleets over the years and designed a strikingly similar business class......that they both branded as "World Business Class."
What happens to this relationship? Will Northwest's hub in Amsterdam become Delta's hub in Amsterdam to continue to operate in complete harmony with KLM?
It is clear that the frequent flyer programs will merger and that Northwest Airlines' WorldPerks will be folded into Delta Airlines' SkyMiles program. Currently Delta's frequent flyer program offers status based only on flown miles, while Northwest's frequent flyer program operates on both flown miles and/or flown segments. With many Northwest elite’s having many short-haul 'segment elites,' will Delta adopt segments, or will Northwest elites be forced out of their status sending them to other airlines and programs?
As the two frequent flyers are merged what is to become of Northwest’s relationship with the Air France-KLM Flying Blue frequent flyer program? With reciprocal upgrades for flyers between the two programs, and Air France-KLM elites having access to the Northwest WorldClubs, will they now have access to Delta's Crown Room Club’s?
I know I am getting bogged down in the relatively minor details. The shareholders are interested in the stock swap values, the buy out packages, the executive structure and the cost reduction of combining overlapping routes...
............wait, I'm interested in the cost reduction of combining overlapping routes.
There are certain flights I have enjoyed on both airlines that are popular flights and that fly out generally full with high revenue passengers. Most of these flights are early or late morning trans-continental routes. These routes are between cities such as New York and San Francisco, and they are fiercely competitive between Delta, American, United, JetBlue and Virgin America. These flights will now be 'overlapping' when combined with a route with a stop in Minneapolis on the Northwest vs a non-stop on Delta. Other routes would be Northwest's extensive flights between North America and Asia, via Tokyo Japan. Will some of these routes, which are all high traffic routes, be eliminated to allow the combined airline to continue its daily non-stop from Delta's 'Fortress' in Atlanta?
The two airlines compliment each other well. Northwest Airlines dominates the Midwest in many markets and has a strong hold on the Pacific routes, while Delta has a strong presence along the east coast and transcontinental routes, along with a significant route structure for Europe and a growing presence in the Middle East.
Overall, while I'd love to see the airline remain independent, I fully understand the merger. In my opinion as an observer sitting on the sideline this is possibly the best matched merger of airlines we have seen in a very long time, ever since......well since Northwest Airlines merged with Republic Airlines.
.............so let's see what the shareholders say. Will we be seeing 747-400s painted up in Delta's livery in the future?
Happy Flying!
Showing posts with label jetblue. Show all posts
Showing posts with label jetblue. Show all posts
25 September 2008
15 June 2008
Happy Father’s Day!
Web: www.fishfoto.com -- E-Mail: fish@flyingwithfish.com
15/6/2008 - Happy Father’s Day!
I'd like to take a moment to wish a Happy Father's Day to all you Dad's who read Flying With Fish.
Today, for Father's Day, my two boys and I went out and explored trains and planes in New York City (I didn't leave my daughter out, she and Mom enjoyed lunch at "American Girl"). My 3.5-year-old son Max decided that for Father's Day he and his brother Simon would go have McDonald's with me while watching planes at the airport.
As Max loves trains we took seven trains today on the way to and from JFK International Airport. Max, Simon and Myself took the subway to the Long Island Rail Road and the Long Island Rail Road to the AirTrain..... or as Max explains it we rode the subway to the commuter train to the AirTrain. After a brief journey we headed over to Terminal 1 to have a relaxing meal of Chicken McNuggets, fries and Powerade while overlooking the planes departing from Runway 31R.
After 'lunch' we rode the AirTrain in a circle, so Max could see all the planes, then headed off to explore two additional terminals (hey, I had homework to do). I really enjoy watching kids and their fascination with airplanes. It is hard enough for many adults to understand the concept of how such a heavy machine of metal effortlessly flies through the sky. For me, watching a child's excitement of watching planes lift off is just priceless.
Max really knows how to make Father's Day special, McDonald's and a large international airport :0)
Below are a few photos from today.
The first photo is of Max on the AirTrain checking out the British Airways and Cathay Pacific tails at Terminal 7. The second photo is of Simon (stroller) and Max (in the seat) on the Long Island Rail Road headed towards Penn Station; photo 3 is Simon sleeping on the uptown R-Train after a long day as Max waits for the next stop and his long awaited trip to a hot dog cart.
Happy Flying & Happy Father's Day!
--Click Images To Enlarge--
...........and one final photo. Max checking out the action in JFK Terminal 4 (while holding a toy JetBlue "Blue York" Airbus A320 in his hands)
15/6/2008 - Happy Father’s Day!
I'd like to take a moment to wish a Happy Father's Day to all you Dad's who read Flying With Fish.
Today, for Father's Day, my two boys and I went out and explored trains and planes in New York City (I didn't leave my daughter out, she and Mom enjoyed lunch at "American Girl"). My 3.5-year-old son Max decided that for Father's Day he and his brother Simon would go have McDonald's with me while watching planes at the airport.
As Max loves trains we took seven trains today on the way to and from JFK International Airport. Max, Simon and Myself took the subway to the Long Island Rail Road and the Long Island Rail Road to the AirTrain..... or as Max explains it we rode the subway to the commuter train to the AirTrain. After a brief journey we headed over to Terminal 1 to have a relaxing meal of Chicken McNuggets, fries and Powerade while overlooking the planes departing from Runway 31R.
After 'lunch' we rode the AirTrain in a circle, so Max could see all the planes, then headed off to explore two additional terminals (hey, I had homework to do). I really enjoy watching kids and their fascination with airplanes. It is hard enough for many adults to understand the concept of how such a heavy machine of metal effortlessly flies through the sky. For me, watching a child's excitement of watching planes lift off is just priceless.
Max really knows how to make Father's Day special, McDonald's and a large international airport :0)
Below are a few photos from today.
The first photo is of Max on the AirTrain checking out the British Airways and Cathay Pacific tails at Terminal 7. The second photo is of Simon (stroller) and Max (in the seat) on the Long Island Rail Road headed towards Penn Station; photo 3 is Simon sleeping on the uptown R-Train after a long day as Max waits for the next stop and his long awaited trip to a hot dog cart.
Happy Flying & Happy Father's Day!
--Click Images To Enlarge--
...........and one final photo. Max checking out the action in JFK Terminal 4 (while holding a toy JetBlue "Blue York" Airbus A320 in his hands)
12 June 2008
United Airlines Adds Baggage Fee : US Airways Takes Its Nickel & Dime Tactics To A Whole New Level!
Web: www.fishfoto.com -- E-Mail: fish@flyingwithfish.com
12/06/2008 – United Airlines Adds Baggage Fee : US Airways Takes Its Nickel & Dime Tactics To A Whole New Level!
The nickel-and-dime tactics started by American Airlines and their slide from 'legacy carrier' to 'low cost carrier’ has started a trend among other US based 'legacy carriers.'
As of this morning United Airlines has followed American Airlines' lead and will begin charging US$15 for the first checked bag as of the 18th of August. To make the even more complex, United Airlines now states that this will apply to all tickets purchased after the 13th of June for travel after the 18th of August.......rather than tickets purchased after the 18th of August.
Flying with two bags? Be prepared to pay US$15 for the first checked bag and $25 for the second checked bag....each way. This means 2 bags will cost you $80 round trip!
United Airlines has a somewhat complex schedule set up for baggage fees. If you're flying United Airlines I suggest reading this baggage fee charge: United Airlines Baggage Information
Keep in mind that baggage fees will not be assessed for international travel on United Airlines.
I have long since detailed the nickel-and-dime tactics of US Airways. While US Airways will also be instituting the $15 first checked bag fee, they are taking the nickel-and-dime game to a whole new level! How is US Airways taking these tactics in a whole new direction? Let me tell you
-US Airways will institute charging for all beverages in-flight in economy class. This means juice, water, coffee, and soda. It is expected this fee will be US$2.00 per beverage.
-US Airways will be raising its alcoholic beverage fee from US$5.00 to US$7.00
-US Airways will be soon be charging a US$25 fee for using you 'miles redemption tickets.'
-US Airways will be assessing a US$35 fee for flights to the Caribbean and Mexico using 'miles redemption tickets.'
-US Airways will be instituting an astounding fee of US$50 for booking flights to Europe and Hawaii when using 'miles redemption tickets.'
-US Airways will be eliminating all bonus miles awarded to 'elite frequent flyers' in its frequent flyer program. (I have to say I saw this one coming, which is one of multiple reasons why I ceased to be a US Airways 'Platinum' frequent flyer')
In an interesting twist, most US based Low Cost Carriers have yet to institute checked baggage fees on the first checked bag. JetBlue now charges for the second checked bag, while Southwest Airlines still allows for two checked bags.
As the divide between legacy carriers continues to blur it turns out that low cost carriers are rapidly offering more to their customers at more affordable rates.
Happy Flying!
12/06/2008 – United Airlines Adds Baggage Fee : US Airways Takes Its Nickel & Dime Tactics To A Whole New Level!
The nickel-and-dime tactics started by American Airlines and their slide from 'legacy carrier' to 'low cost carrier’ has started a trend among other US based 'legacy carriers.'
As of this morning United Airlines has followed American Airlines' lead and will begin charging US$15 for the first checked bag as of the 18th of August. To make the even more complex, United Airlines now states that this will apply to all tickets purchased after the 13th of June for travel after the 18th of August.......rather than tickets purchased after the 18th of August.
Flying with two bags? Be prepared to pay US$15 for the first checked bag and $25 for the second checked bag....each way. This means 2 bags will cost you $80 round trip!
United Airlines has a somewhat complex schedule set up for baggage fees. If you're flying United Airlines I suggest reading this baggage fee charge: United Airlines Baggage Information
Keep in mind that baggage fees will not be assessed for international travel on United Airlines.
I have long since detailed the nickel-and-dime tactics of US Airways. While US Airways will also be instituting the $15 first checked bag fee, they are taking the nickel-and-dime game to a whole new level! How is US Airways taking these tactics in a whole new direction? Let me tell you
-US Airways will institute charging for all beverages in-flight in economy class. This means juice, water, coffee, and soda. It is expected this fee will be US$2.00 per beverage.
-US Airways will be raising its alcoholic beverage fee from US$5.00 to US$7.00
-US Airways will be soon be charging a US$25 fee for using you 'miles redemption tickets.'
-US Airways will be assessing a US$35 fee for flights to the Caribbean and Mexico using 'miles redemption tickets.'
-US Airways will be instituting an astounding fee of US$50 for booking flights to Europe and Hawaii when using 'miles redemption tickets.'
-US Airways will be eliminating all bonus miles awarded to 'elite frequent flyers' in its frequent flyer program. (I have to say I saw this one coming, which is one of multiple reasons why I ceased to be a US Airways 'Platinum' frequent flyer')
In an interesting twist, most US based Low Cost Carriers have yet to institute checked baggage fees on the first checked bag. JetBlue now charges for the second checked bag, while Southwest Airlines still allows for two checked bags.
As the divide between legacy carriers continues to blur it turns out that low cost carriers are rapidly offering more to their customers at more affordable rates.
Happy Flying!
Subscribe to:
Posts (Atom)
