Tuesday, September 30, 2008

Giant of the Skies


What was the world's biggest airline? who cares.

There is a new king. It's name is DELTA. Shareholder's have just approved the merger between Northwest and Delta, forming a single new airline that retains only the Delta name.Both airlines do not overlap in terms of customer base and geogaphic operation markets. Northwest dominates the US-Asia market, whilst Delta dominates the US-Latin Americ-Europe market. With this merger, I guess they form the first truly global airline that reaches almost every part of the world except Africa. This is what you really call ECONOMIES OF SCALE.

United is also in talks to merge with either Continental or US Airways, and then there's also the never ending American Airlines-British Airways, now including Iberian Airlines threesome. Consolidation is happening in the skies as much as it is happening on Wall Street.

I'm so glad I switched to NWA already. If any company should go under in these times, it should be United Airlines. No love lost for them.

Find out more about the new biggest airline at www.newglobalairline.com.

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