By Don Douloff, April 25, 2008
As the hospitality industry absorbs the news about Delta and Northwest Airlines’ intention to merge, major questions remain about the potential for reduced competition and rising fares for overseas and domestic flights.
The big question is whether the U.S. Justice Department’s anti-trust division will approve the deal. Industry insiders, however, believe the Delta-Northwest merger will get the green light from federal regulators. Their optimism springs from a recent ruling, by regulators in the U.S. and European Union, giving the two airlines anti-trust immunity in their trans-Atlantic partnership with Air France and KLM.
If the deal goes through, the newly created airline, to be called Delta, would be the largest carrier in the domestic American market, the number one U.S. carrier to Europe , Africa , the Middle East and across the Pacific, and the number two U.S. carrier to the Caribbean and Latin American markets.