Delta Merger Could Up Prices

By Valerie Lovett, The News Herald, Panama City, Fla.

Jan. 13–PANAMA CITY — A U.S. Airways takeover of Delta Airlines — if it came to fruition — would mean thousands of jobs lost and diminished services to smaller communities such as Panama City, says a spokeswoman for Delta’s pilots’ union. “We see it as a bad deal for small communities, a bad deal for employees and a bad deal for the flying public,” said Kelly Collins, representing the Delta chapter of the Air Line Pilots Association. Delta does not fly into Panama City, though it does partially own commuter liner Comair, one of two Delta Connection providers that shuttle passengers from Panama City-Bay County International Airport to Delta’s hub in Atlanta. Atlantic Southeast Airlines, or ASA, is the other. Airport Authority Chairman Joe Tannehill said a merger likely would have little effect on operations at the Panama City-Bay County International Airport. “It is my personal opinion, I would say, that anything that would benefit Delta would probably end up benefiting us eventually,” Tannehill said. “But right now, it’s not relevant because they don’t serve here.” Though U.S. Airways officials have said any job cuts to Delta employees would come by way of voluntary leaves of absence and attrition, Collins is skeptical. “It doesn’t add up,” she said. “It simply doesn’t when you look at the route overlaps that U.S. Airways presented, you can see they mean what equates to a monopoly in some markets.” Delta employees leading a campaign against the merger created a Web site outlining exactly how the merger might impact communities served by the airline. Delta also reportedly has been in merger discussions with Northwest Airlines, which is trying to emerge from bankruptcy. Impact elsewhere While Panama City may not be directly affected by U.S. Airways-Delta merger, regional airports in the Panhandle might. Keepdeltamydelta.org highlights that Pensacola likely could see higher fares. It also said that nearly 60 percent of seats would be controlled by the combined airline and the merger would mean the creation of 36 city pairs with a combined passenger share greater than 90 percent. In Tallahassee, the site predicts higher fares with 80 percent of seats controlled by the combined airline and the creation of 50 city pairs with a combined passenger share greater than 90 percent. “I think the flying public loses something every time one airline gobbles up another one,” Tannehill said. “I think the employees lose and I think the communities they serve, more often than not, lose. Personally, I would like to see Delta stay independent.” U.S. Airways offered to buy Delta on Nov. 15, then upped the bid this week by some 20 percent to $10.3 billion in cash and stock. “We are obligated to look at this and do what is best for Delta stakeholders,” Delta spokeswoman Betsy Talton said. “Delta has said we think our restructuring plan is working, and the company is making tremendous progress. We’ve said we’ll emerge from bankruptcy by the middle of the year.” The increased offer will expire Feb. 1 unless Delta’s creditors vote their support for commencement of due diligence. U.S. Airways stopped service through the Panama City-Bay County International Airport in December 2004.

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Copyright (c) 2007, The News Herald, Panama City, Fla.

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