Delta - NWA merger effect on VPS and PFN

My brother works for Delta. I plan to talk to him tomorrow about the buzz at work. If I hear anything, I'll post. Brother was a victim of the Ron Allen layoffs, was later rehired, and had enough seniority to avoid the later layoffs. I'm keeping my fingers crossed.

Funny story -- Delta employees were really mad about the Ron Allen layoffs (around 1990?), and every time Ron flew, the baggage handlers just "accidentally" damaged or lost his bags.

No hubs are being closed as a result of the merger. This was one of the good things about our marriage to NW. Our route systems compliment each other.

BTW...there's a long long way to go. If all goes to plan, it will be close to December before anything happens...

Delta baggage handlers need to put effort into losing luggage like Northwest needs to leave my arse in Memphis more often!

Northworst + Don't Expect to Leave The Airport = :yikes:

We so need a decent train system! :bang:

Today's Memphis Commercial Appeal says the hub there will not close. Of course, that could decision could change over time. Most corporate buyouts include promises that are later reversed. For now, it appears that Delta has realized they couldn't just dump the Memphis hub load on Atlanta, Detroit, and Minneapolis for various capacity, scheduling, and operational reasons.

But my questions and concerns about the Okaloosa Regional and Panama City airports remain. And I'd expect the folks at Pensacola have the same concerns.

Got this from Northwest this morning:

Dear Scooterbug,
[FONT=arial, verdana, sans-serif] As a valued Northwest Airlines customer and WorldPerks? member, I wanted you to be among the first to hear that we have announced a merger with Delta Air Lines. Subject to regulatory review, our two airlines are joining forces to create America?s premier global airline which, upon closing of the merger, will be called Delta Air Lines.

By combining Northwest and Delta, we are building a stronger, more resilient airline that will be a leader in providing customer service and value. Our combined airline will offer unprecedented access to the world, enabling you to fly to more destinations, have more flight choices and more ways than ever to earn and redeem your WorldPerks miles.

You can be assured that your WorldPerks miles and Elite program status will be unaffected by this merger. In addition, you can continue to earn miles through use of partners like WorldPerks Visa?. And once the new Delta Air Lines emerges you can look forward to being a part of the world?s largest frequent flyer program with expanded benefits.

The combined Delta Air Lines will serve more U.S. communities and connect to more worldwide destinations than any global airline. Our hubs ? both Delta?s and Northwest?s ? will be retained and enhanced. We will be the only U.S. airline to offer direct service from the United States to all of the world?s major business centers in Asia, Latin America, Europe, Africa and around North America.

Both airlines bring tremendous strengths to this new partnership. Our complementary service networks form an end-to-end system that is truly greater than the sum of its parts. This is a merger by addition, not subtraction, which means all of our hubs ? both Northwest?s and Delta?s ? will be retained. In addition, building on both airlines? proud, decades-long history of serving small communities, we plan to enhance global connections to small towns and cities across the U.S.

All of these positive benefits of our combination mean that we can: [/FONT]

• [FONT=arial, verdana, sans-serif]
  [*]Offer a true global network where our customers will be able to fly to more destinations, have more schedule options and more opportunities to earn and redeem frequent flyer miles in what will become the world?s best and most comprehensive frequent flyer program.
  [*]Continue to serve our current roster of destinations and to maintain our hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York, Salt Lake City, Amsterdam and Tokyo.
  [*]Improve our customers? travel experience, through new products and services including enhanced self-service tools, better bag-tracking technology, more onboard services, including more meal options, new seats and refurbished cabins.[/FONT]

[FONT=arial, verdana, sans-serif]While we work to secure approval of our merger, which may take up to 6 to 8 months, it will be business-as-usual at both airlines. We will continue to operate as independent airlines and the people of Northwest will remain focused on providing you with the very best in safe, reliable and convenient air travel. At the same time, both airlines will be planning for a seamless integration of our two airlines, one that delivers to you the enhanced benefits that will earn ? and retain ? your preference.

As we work through this process, we will keep you informed at every step along the way. Thank you for your business and we look forward to serving you on your next Northwest flight.

Sincerely,

Bob Soukup
Managing Director, WorldPerks

[/FONT]

a merger of the two, may be a cost effective method used to help stabilize prices during a time of ever-increasing fuel prices. The down-side is as you note, a loss of competition, which typically increases prices to the consumer.

One thing that helps is that VPS does have to compete with the bigger Mobile and Pensacola airports for the same customer base, and both of those have a fairly decent number of different carriers. So there's something that tugs prices lower there. In turn, those lower prices at VPS can encourage PFN to keep prices lower at well.

And all the airport directors between PFN and Biloxi are extremely agressive about trying to get new carriers into their markets. They're constantly trying to increase carrier diversity, which turns into better value and options for the consumer.

Which is good because there is no way I'm getting on an ASA plane again unless there are extrordinary circumstances.

Article on MSNBC predicts that fares will be higher and that United & Continental will now merge to stay competitive. :blink:

http://www.msnbc.msn.com/id/24128795

Article on MSNBC predicts that fares will be higher and that United & Continental will now merge to stay competitive. :blink:

http://www.msnbc.msn.com/id/24128795

And if I were to GUESS, I would say there will be more people fighting for fewer frequent flyer seats so those will be even harder to get.. :bang:

The new Panama City hub will have some impact on the routes coming out of VPS. It has to just due to its proposed size. Years into the future, but something to keep an eye on. It could become a threat to Memphis from a passenger standpoint. Memphis is a huge shipping hub regardless of the people flowing through it. Memphis isn't going anywhere soon as far as brick and mortar which then stands to reason makes sense to keep people in the mix.
Now that I am in SRB, I don't know which would be closer, Panama City or Fort Walton Beach for future flights. I sure don't like the idea of travel to Pensacola to get anywhere anymore. I personally appreciate FWB right now.

The new Panama City hub will have some impact on the routes coming out of VPS.

Not unless demand dictates it. Obviously, the demand is not there, yet, as the VPS aircraft are packed whereas the PFN aircraft are not.

As I've said on other airport threads, airlines do not operate on the Field of Dreams principal..."Build it, and they will come..."
You can have a beautiful new airport, but unless the paying public shows a need to change frequency / aircraft size based on passenger yields it's just not going to happen. VPS is only 60 miles away, yet, it warrants larger aircraft and a few more flights a day. By and large, the passengers using VPS either have no need to fly into PFN, or they are choosing not to fly into it for other reasons. Wait until all the condos are finished. You'll see demand pick up...

SC, my understanding for the aircraft size difference was due to the shorter/restrictive runway currently at PFN. Is that incorrect as well?

It's not like you can land a 747 at PFN like you can at VPS (which is long enough to land a 747 with a Space Shuttle piggybacked on it there). But it is long enough to safely handle a fair number of mid-sized jets, and is actually not that much shorter than the 'long' runway at Washington National, and National handles a ton of those planes every day.

SC, my understanding for the aircraft size difference was due to the shorter/restrictive runway currently at PFN. Is that incorrect as well?

The new airport basically being built to the same spec as the old airport. The new runway is not much longer at all. The terminal is the biggest difference between the two airports. I've flown Delta 737's and MD88's into Panama City, but they always got pulled from the route because they were always running way under capacity.

I have the entire project file for the new airport at home, but if I remember correctly, it does say while the runways and taxiways are build to accomodate the weight of something the size of a 757 the airport was designed around aircraft the size of Airbus A319's and 320's (same basic airframe) which are no larger than MD88's.