Airline merger would have a big-city impact
— -- A Delta-United deal would be an industry game-changer, giving the combined carrier heft in eight of the USA's 12 biggest business markets, according to a USA TODAY analysis of schedule data from OAGback Aviation Solutions. The analysis combines the current shares of each carrier in the big markets, establishing a rough estimate of the share the combined carrier might control.
None of the airlines has publicly confirmed merger talks, but outsiders last week, including U.S. Rep. James Oberstar, D-Minn., confirmed Delta-Northwest merger talks and the possibility that Delta-United talks could heat up.
Either deal would create the USA's biggest airline. Delta-United would command a 25% share of all seats on U.S. flights; Delta-Northwest, 22%.
A Delta-United combination would command significant market shares in Boston, New York and Atlanta, where Delta is strong, as well as Washington, D.C., Chicago, Denver, San Francisco and Los Angeles, where United operates hubs.
A smaller, Delta-Northwest combination would command significant market shares at five of the top 12 U.S. business centers: Boston, New York and Atlanta, along with Minneapolis and Detroit, cities where Northwest dominates.
Delta's domestic hubs don't overlap United's or Northwest's, so neither combination would result in big market share increases in any individual markets.
But all three of the carriers depend heavily on revenue from business travelers, who tend to pay higher fares than leisure travelers and travel more often. The impact of either combination would be felt most by business travelers and their companies.
"One thing business travelers would face is higher fares" on more routes involving big business markets, said Jon Ash, president of Washington-based consultant at InterVistas-ga2.
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