DAL/NWA merger to save $1 billion…peanuts
According to a report in The Hill, airlines CEOs from Delta and Northwest claim that only 1,000 jobs will be lost and savings will amount to $1 billion.
With Delta and Northwest reporting more than $10 billion dollars of losses in the first accounting quarter, a savings of only a billion is a joke and will hardly affect the balance sheets of these airlines.
Reporting in The Hill noted
Merging Delta and Northwest can help, the CEOs argued, even though less than 1,000 employees would ultimately be adversely affected. That’s because the airlines can save on space at airports, combine equipment, boost their purchasing power and lower overhead costs to eventually save $1 billion. At the same time, they said their companies can offer more aircraft choices and serve more markets.
This is all of the savings that the airline CEOs can point to other than their mysterious “fuel savings.” Does anyone out there know how merging two disfunctional airlines will magically produce a fuel savings?
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