Apr 15, 2008 10:57 pm US/Central
Reality Check: How The Merger Could Affect Airfare
(WCCO)
Airline executives, union members and lawmakers clearly don't agree on what changes are in the air for travelers with the merger of Northwest Airlines and Delta Air Lines.
Air travelers already know that ticket prices are going up, and so far it is mostly because of the sticker shock from record oil prices.
IN FACT...
In just the last year, oil prices are up at least 77 percent. They are now topping a record $110 a barrel, pushing the cost of jet fuel sky high.
However, Minnesota travelers should get ready for another jolt.
IT'S TRUE...
Airline analysts say a merger might be good for the
company's bottom line. But
travelers sometimes face higher fares and reduced service, especially in larger cities with fewer planes to smaller destinations.
Here is WHAT YOU NEED TO KNOW.
After the airlines establish near-monopoly control in the Twin Cities, the merger could mean permanently higher fares for flights from Minneapolis to Cincinnati, Salt Lake City and Atlanta, and for flights to Minneapolis from Atlanta, New York and Washington.
That's NOT THE WHOLE STORY.
On the plus side, there will be more destinations and connections around the world from the Twin Cities. However, whether small Minnesota cities maintain their current level of air service is an open question. One that federal antitrust regulators will study before giving the merger an OK.
That's Reality Check.
To check the resources for this Reality Check click on the links below.
CNN: Delta-Northwest Deal Could Mean Fewer Cheap Seats Where Airline Mergers Would Hurt Travelers Most ABC News: Do Airline Mergers Mean Higher Prices? Obstacles May Slow Delta-Northwest Deal 
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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