The airline world has been in constant change over the past few weeks with companies announcing they are shutting their doors (Aloha, ATA, Skybus) and others declaring bankruptcy (Frontier). The latest news from the industry is the announcement that Delta (DL) and Northwest (NWA) will merge operations.

The new airline will retain the Delta Airlines name. On the surface, this looks like a great move for both airlines. The new merger should offer a substantial boon for Delta’s cargo operations. Northwest was a major player in international air cargo while Delta’s cargo service was limited at best.

Additional benefits according to newglobalairline.com:

* Service to over 390 destinations in 67 countries, including more than 140 small communities across America.

* The combination of Delta’s strengths in the South, Mountain West, Northeast, Europe and Latin America with Northwest’s leading positions in the Midwest, Canada and Asia

* Access to 840 destinations in 162 countries through SkyTeam Alliance.

* Maintained operations and enhanced access to more destinations worldwide at all current Delta and Northwest hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Tokyo-Narita, and Amsterdam.

* An enhanced customer experience from investments in the fleet, including the opportunity to exercise options for the delivery of up to 20 new widebody jets, and investments in new customer services, including enhanced self-service tools, better bag tracking technology, new seats and refurbished cabins.

* Enhanced competition in the industry as the combined company becomes a stronger airline, better able to compete with discount carriers and growing international airlines that are serving more markets in the U.S.

Having worked for Delta early on in my career I have always taken a rooting interest in their survival. This particular move is a step in the right direction for long term viability. The merger creates the world’s largest airline with revenues of over $31 billion.

Official press release.

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