FlyerTalk Forums - View Single Post - AAMRQ: TPG, US Airways (LCC) and Delta (DAL) consider bids for AMR Corp-- WSJ ($0.36)
Old Jan 13, 2012, 12:47 pm
  #151  
Ambraciot
 
Join Date: Jun 2011
Location: BOS
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Originally Posted by newyorkgeorge
But DL has ATL (although MIA has more South America O&D traffic) and DTW and MSP. While DTW and MSP certainly do not have the O&D traffic of ORD there is not a major competitor in either airport. I'm not sure that all of these expensive hubs could be supported.
If DL can continue to operate MEM in the shadow of ATL I don't really see how MIA or DFW is going to interfere with the existing hub structure. ORD, DTW, CVG and MSP will step on each others toes, but even if ORD loses a few of its international flights, the new merged airline would be more competitive for Chicago O&D customers than AA or DL could ever be on their own. Likewise DTW, CVG and MSP might see some cuts, but DL would still be dominant and presumably profitable at them.

I really do believe that the AA and DL customer bases could be preserved throughout a merger, so the bulk of any cost reductions and fare increases would reach the bottom line.
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