Delta-Northwest deal could mean fewer cheap seats
If a big airline combination is approved, frugal fliers could feel the pinch.
NEW YORK (CNNMoney.com) -- It may be time to wave goodbye to some of those discount fares. If Delta Air Lines and Northwest Airlines complete a merger to form the largest U.S. airline, travelers can expect fewer deals and higher fares on some remote routes.
A combination has been rumored for weeks and reports Tuesday indicated that a deal was close.
Airlines generally try to keep flights as full as possible, and the proposed new carrier would continue that trend. "If all the planes are full," said Rick Seaney, founder of fare search site FareCompare, "they can increase prices and have them stick."
With fewer available seats, airlines cut back on the supply of cheapest seats first.
Well duh, that was the stated goal of a merger from the start: reduce the number of flights overall to make a combined airline (and industry) profitable. Delta eats NorthWest. And then American or United eats Continental. And then they all start charging enough to cover their costs, and I get to keep my silverware in business class.
