Air Routes: Everybody wants to fly to Vegas, from every point of the compass. US Airways plans to do just that—nonstop—from West Palm Beach beginning in February. There will be a quartet of weekly departures…Since Delta dumped its DFW hub, American has been the only carrier lofting nonstops from Birmingham to the Dallas/Fort Worth Metroplex. Now, word that Southwest plans to make the run from BHM to Dallas Love Field twice daily beginning March 11.
Airlines: US Airways wants very badly to merge with Delta, assuming the larger carrier’s name and legacy. The combo, if it happens, could be potent. It could also affect the prices frequent flyers pay. “Business travelers would pay higher ticket prices as [seat] capacity is removed,” the Business Travel Coalition asserts. US Airways wants to pay some $8 billion in cash and stock to Delta’s unsecured creditors. Delta, of course, is currently in Chapter 11. If successful, the move, according to US Airways, “would create one of the world’s largest airlines.” How’s Delta feel about the deal? A spokeswoman says the Atlanta-based airline “is focused on emerging as a stand-alone company.” Maybe. But Delta’s bankruptcy clouds the issue. Will creditors go for US Airways’ proposal? Will the Bankruptcy Court approve such a deal? How ‘bout DOJ? Would a US Airways/Delta amalgam damage competition—especially along the East Coast? US Airways/Delta would take in a lot of territory. Together they’d fly to more than 350 destinations across five continents. Domestically, the “new” Delta would be the number one airline at 155 airports. The impact could be profound, BTC says. “This merger proposal represents a game-changing move,” the coalition says, one that would “likely be responded to by competitors—with the attendant likely scenario that additional competitors would be eliminated.” Buckle your seatbelt, stow your tray table, and return your seat to the upright and locked position. The wresting match that ensues over this proposal could get rough. US Airways is no stranger to merger. It’s the hybrid product of multiple liaisons. America West bought US Airways, when the latter was itself in Chapter 11. Before the America West acquisition, US Airways was the result of mergers involving Piedmont, Pacific Southwest, Mohawk and others. Delta is one of the industry’s legendary legacy carriers. It’s cultural roots run deep. If the merger happens, look for the combined company to cut capacity by 10 percent…AirTran and Frontier have inked a marketing deal, one that allows you to book the flights of one carrier on the other’s Web site. Reciprocal earn and burn privileges also apply to their respective frequent flyer programs.
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