They want to merge Delta Air Lines and Northwest Airlines to improve life (allegedly) for shareholders and consumers. The companies' stocks plunged after the merger was announced, so we know shareholders aren't crazy. Consumer groups raised heck, too, so they also know what they would be in for.
Let's hope antitrust regulators will be similarly clear-eyed. Letting Delta marry Northwest - or US Airways join United Airlines, which is reportedly in the works - will raise fares, strand secondary cities and make air service even worse, if you can believe that's possible.
Chances of operational success for either deal "are extremely remote, based upon history," says Kevin P. Mitchell, chairman of the Business Travel Coalition. "Customer service is likely to be a disaster for many, many, many years."
US Airways' stock is about a fifth of what it was when it combined with America West. Thanks to union problems, the companies still essentially operate separately, although the merger closed almost three years ago.
A combined Delta and Northwest would own 18 percent of the U.S. domestic market. United and US Airways would have 17 percent. Those aren't monopoly numbers, but reducing the top seven airlines to five would still give carriers much more leeway to raise prices.
A United-US Airways combo would be especially problematic for Baltimore and Washington.
Without quite saying so, airlines argue that they deserve the ability to anti-competitively raise prices because they are losing millions. Fuel cost has soared. They didn't hedge the risk. Now they want the Justice Department to bless what would be illegal behavior by separate companies - price collusion - by ending the separation.
US Airways, the smallest of the four companies c ...