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Tuesday, April 22, 2008

Citizen Outreach Supports Delta-Northwest Merger

WASHINGTON, April 22 /PRNewswire-USNewswire/ -- Citizen Outreach, a grassroots advocacy organization supporting free markets and limited-government public policies, says a proposed merger between Delta and Northwest Airlines would be a win-win for the nation. “This merger amounts to an economic trifecta,” said Chuck Muth, president and CEO of Citizen Outreach. “It’s good for employees, good for consumers and good for communities.”

Delta, which is ranked as the world’s third largest airline, recently announced plans to merge with Northwest, which is ranked sixth globally and is the fifth largest airline in the U.S. Delta has its main hubs in the Southeastern part of the country, while Northwest dominates in the upper-Midwest and on trans-Pacific routes.

The merger would mean scores of new routes for travelers as Delta and Northwest currently have very little overlap domestically and virtually none on overseas routes. “For rural areas served by either airline, the merger literally opens up a new world of travel opportunities,” Muth said.

Both airlines said they do not anticipate greatly reducing capacity or frontline furloughs. Employees will also receive an equity stake in the combined airline.

“This merger will mean long-term stable employment for workers at a time when the rest of America’s economy is fragile,” Muth said. “A Delta/Northwest merger will result in a stable airline which will be more resilient and better equipped to deal with the ups and downs of the industry.”

The merger will also relieve both airlines from some of the pressures of rising fuel costs. “Consumers have struggled under the current airline landscape, with travel either too difficult or too costly for many American families,” Muth said. “The proposed merger means families will have more viable travel options.”


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