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Submitted by cajundiva53 on May 5, 2008
- Category: Business
- Words: 923
- Pages: 4
- Views: 95
- Popularity Rank: 2653
Overseas Business
Delta Airlines and Northwest are in agreement to merge to consolidate their fleets and routes to maximize profit. The airlines’ goals are to cut costs and raise revenue. A hedge fund that asked Delta in November to seek a merger with United estimated that such a combination could reduce costs by $585 million a year and that a merger of Delta and Northwest could reduce costs by $1.5 billion a year. (New York Times, January 2008) That would reduce the number of flights in some markets, possibly eliminate smaller hubs. Delta plans to expand its Cincinnati hub and Northwest plans to expand its Memphis hub and the rest would be used to raise fares. This merger would create the world’s...
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