Don’t believe Delta CEO
When US Airways made a bid for Delta CEO Richard Anderson assured investors that they preferred to stand alone. Today he is singing a different tune.
According to the New York Times, investors who believed Anderson when he was fighting the US Airways takeover have taken a $5 billion dollar bath. His credibility with them has surely been tested.
Here are some other comments that have be made by Delta and Northwest that are almost impossible to believe.
We will keep all of our hubs functioning (or some variation of that theme).
No front line staff will lose their jobs.
We will protect compensation.
We need to merge because of high fuel costs.
Our frequent flyer programs will continue seamlessly.
Here is the truth as I see it.
–Some hubs will close or be dramatically downsized. The hub system is expensive.
–Staff will be fired. The airline will be downsized.
–Compensation will be “protected” but will not budge and benefits will be cut.
–High fuel costs have nothing to do with merging. Fuel costs will be the same with or without the merger.
–Both Frequent Flyer programs will change as they are combined. I can almost guarantee that the Northwest 20,000 mile flights will be history.
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