Tuesday, November 27, 2007

Union of Superpowers


Everyone is beginning to feel the results of oil rising to $100 a barrel, especially when it becomes time to pay at the pump. However, major corporations are also making drastic changes to their methods in order to make a profit with extremely high fuel prices. Now, United Airlines and Delta Airlines have been discussing one of the biggest mergers in airline history. The nation’s 2nd and 3rd largest carriers began talks that they would keep United’s name and headquarters in Chicago.


This corporate takeover is an example of a popular method companies use to combat high jet fuel costs and prevent going into bankruptcy. Delta Airlines has already set up a committee to determine what strategic methods will be most beneficial to the carrier, and whether a merger is the best option. There is also concern on making a final decision before Delta’s CEO is replaced and a new administration comes into power. Current plans reveal that if the airlines do merge, Delta’s hub in Atlanta would be an operational center for the new company with Anderson being CEO of the combined carriers.

However, Delta and United aren’t the only airlines that have recently talked about a merger. Delta has also considered a merger with Northwest Airlines since Anderson was former CEO of that company, but Anderson denies any motive for coming to Delta solely to merge with his former company. Whatever the case may be, experts say that it is imperative that Delta mergers with another airline instead of risking going alone with fuel prices rising. Consumers are main points on the issue because of the routes and ticket prices they pay to get to their final destination. A union of United and Delta would seem to be beneficial to most customers because if the plethora of routes Delta has on across the Atlantic and United having networks in the Pacific region. It is certain that any merger will not be an easy one but today in the airline business, almost every possible method must be utilized in order to survive the day to day struggle.

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