DOJ approves the merger!
 

Yippee Hurrayyyy!

http://www.reuters.com/article/marke...0081029?rpc=44

So much for the letter I sent. Anyone have a link with details? Wondering how screwed we are here at CVG.

STATEMENT OF THE DEPARTMENT OF JUSTICE’S ANTITRUST DIVISION
ON ITS DECISION TO CLOSE ITS INVESTIGATION OF THE MERGER OF DELTA AIR LINES AND NORTHWEST AIRLINES

WASHINGTON – The Department of Justice’s Antitrust Division issued the following statement today after the Division announced the closing of its investigation of the proposed merger of Delta Air Lines Inc. and Northwest Airlines Corporation:

“After a thorough, six-month investigation, during which the Division obtained extensive information from a wide range of market participants–including the companies, other airlines, corporate customers and travel agents–the Division has determined that the proposed merger between Delta and Northwest is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition.

“The two airlines currently compete with a number of other legacy and low cost airlines in the provision of scheduled air passenger service on the vast majority of nonstop and connecting routes where they compete with each other. In addition, the merger likely will result in efficiencies such as cost savings in airport operations, information technology, supply chain economics, and fleet optimization that will benefit consumers. Consumers are also likely to benefit from improved service made possible by combining under single ownership the complementary aspects of the airlines’ networks.

“The Division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the Division’s obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the Division’s evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the Division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the Division in any future enforcement actions.

Delta, based in Atlanta, is the third largest airline in the United States. In 2007, it collected $19.1 billion in revenue for carrying 73 million passengers more than 126 billion miles. Delta and its domestic regional affiliates offer service to more than 300 destinations in 58 countries.

Northwest, based in Minneapolis, is the fifth largest airline in the United States. Last year, it carried approximately 53 million passengers 72 billion miles for total revenues of $12.5 billion. Northwest serves 239 destinations in 21 countries in North America, Asia and Europe.

Wait till the folks find out about this little misnomer....

Sux but thanks for the heads up! I immediately extended my wife's WC membership for another 3 years. DL charges significantly more for spouses.

This makes WN #2, which gives them a target to focus on! :D Anyone who thinks DL/NW is going to be a happy, profit-making cookie monster is incredibly short-sighted.

This truly sucks and again the consumer gets screwed. If you honestly believe that this is in the best interest of consumers.......NOT! Less choice and competition is never a good thing.

So CO is coming to *.

Time to resurrect that last NW flight DO thread, huh? Come to think of it, I picked a heck of a day to be wearing an NW sweatshirt...

Oh well, all good things ... I'll be on NW on 12/31 with the family. It will be bitter sweet. Perhaps, we should start a thread with who will be on NW on 12-31. Safe Travels.

Yup. Wondering when CO will enlighten us a little more about the roadmap.

Must admit, the reduced competition is a concern.

Yep, CO will be leaving from Skyteam and will be transferred to Star Alliance to joins with UA, US, LH, AC, NH, CA, SQ, TG, NZ, OS, BD, and etc.

This day couldn't get any worse. Nine out of ten times when I fly its on NW. Now when I fly, instead of dealing with down to earth friendly employees i'll have to deal with employees that act like the Price is Right contestants. Instead of watching the "safety dance" in the aisle by the F/As ill be watching Dirtbagalina. When waiting to board, instead of seeing a sea of beautifully painted Silver and Red planes ill see a livery that was looks like it was designed by a four year old. Its a good thing I rarely fly J class because id be complaining about the herringbone seating DL has. Had this been the DL of five years ago, I wouldn't be complaining. I just hate this new "trendy" Virgin America/Jet Blue image DL is trying to develop and failing miserably at. If it was the DL of a few years ago I wouldn't have a problem with it. But I hate what DL has become and I hate the thought of what NW is about to become. I'll get over it, i'll probably end up flying on DL if its convenient for me, but I don't have to like it. ;) I'm not going to boycott the airline. I just find it sad to see this great legacy carrier eaten up by DL.

I wouldn't be so concerned. With WN, UA, CO, US, AA, B6, and scattered others (either already there or waiting to come onto the scene), there remains sufficient competition to keep everyone on their toes. Even if we view CO/UA as a de-facto merger, we are still looking at 5 major domestic players, plus a handful of smaller lines. I don't see much difference in pricing pressure going from 7 to 5.

I would be more concerned with the proliferation of JVs for TATL service. There, we are going from perhaps 12 players to maybe 3 major players. But the JVs were coming, with or without this merger.

Anybody that thinks this merger is about cementing the #1 position in the US domestic market hasn't been paying attention to the industry. This is about giving DL/NW the capacity to become an international heavyweight, something neither one of them could conceivably do on their own.