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Abstract

Capping months of negotiations, the US' major airlines - Delta Airlines and Northwest Airlines inched closer by finalising their merger deal. Battling against soaring fuel costs and looming demand for air travel, the world's largest carrier intends to generate substantial revenues from scale benefits and significantly reduce duplicate costs. While their complementary routes help them gain a global footprint, sailing through antitrust approval amid labour and pilot unrest remains a challenge for both the airlines. Further, the case also delves deep into issues such as - the trigger that led to the merger drive between the two. In a consolidating and troubled industry, should mergers and acquisitions be dictated by short-term interests or long-term interests?
Location:
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Other setting(s):
2008

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Abstract

Capping months of negotiations, the US' major airlines - Delta Airlines and Northwest Airlines inched closer by finalising their merger deal. Battling against soaring fuel costs and looming demand for air travel, the world's largest carrier intends to generate substantial revenues from scale benefits and significantly reduce duplicate costs. While their complementary routes help them gain a global footprint, sailing through antitrust approval amid labour and pilot unrest remains a challenge for both the airlines. Further, the case also delves deep into issues such as - the trigger that led to the merger drive between the two. In a consolidating and troubled industry, should mergers and acquisitions be dictated by short-term interests or long-term interests?

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Location:
Industry:
Other setting(s):
2008

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