High fuel costs may trim down Delta-Northwest

Northwest’s CEO, Doug Steenland, told members of the business community that while his carrier will retain its Minneapolis-St Paul hub even after its expected merger with Delta Air Lines, the newly fused company may end up shrinking, due to record-high fuel prices. Steenland noted that the cost of fuel will have to be “passed on to consumers” and this will necessarily result in noticeably higher airfares. As such, some travellers will likely think twice before flying, which would mean that the merged carrier would probably have to trim down its operations in certain centres. Northwest’s CEO did, however, confirm, that its flight training facility, data centre and booking offices will all remain open in Minneapolis-St. Paul, even once the merger has been completed.

Northwest and Delta seem ever closer to a full merger and the two airlines sat down late last week to come up with precise plans about how to go ahead with the proposed fusion. If everything goes according to plan, the merger would be completed before the end of the year and Northwest would only continue to operate under its own, independent brand name for about one more year. After this point, the carrier will simply take up the Delta Air Lines name. The new carrier’s main offices will be in Atlanta, which is where Delta is currently headquartered, but Northwest will maintain its prominent presence in Minneapolis-St. Paul, though under the merged Delta banner.

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