The merger between Delta Air Lines and Northwest Airlines, if approved, would create one of the world's largest cargo operations, cargo leaders at both airlines claim, and prompt other carriers to quickly follow suit. "Between the two carriers, we will be the No. 1 U.S. cargo airline by far," Northwest Airlines Cargo President Tom Bach said. "We're going to have direct widebody service to every major center of commerce worldwide."
It's the largest announced merger of airlines since Air France and KLM combined and experts are predicting more consolidation, particularly in the United States, as carriers struggle with soaring fuel costs and tough price competition. Delta and Northwest would become the world's largest passenger airline and offer cargo service to more than 390 destinations worldwide, including all key freight centers in Asia.
"We are not going to make stupid decisions. We're going to run this business for maximum profitability," said Neel Shah, vice president of cargo for Delta.
Shah said the carrier would soon start "hard analysis" of the operations. Those items that "don't add to the bottom line, we'll stop doing," he said.
In a letter to customers, Shah, said the combined operation would add cargo capacity to the fleet by exercising options for up to 20 widebody passenger-configured jets between 2010 and 2013.
John F. Walsh, founder of the Walsh Aviation consultancy believes Delta/Northwest cargo will mimic somewhat the successful formula of Air France and KLM Cargo by providing all freighter and belly freight service.
With its 747-200 freighters operating on Pacific routes, Northwest was long the largest cargo-carrying American passenger airline, but fell to No 3 behind American and United airlines, based on traffic. Combined those carriers have about 37 percent share of the cargo business by U.S. passenger airlines based on revenue. Based on cargo ton miles flown, Northwest has about 20.9 percent of the market divided by the combination carriers and Delta has 12.3 percent, according to data from OAG, a sister company of Air Cargo World.
In interviews, both cargo leaders provided merger-related details as well as information on plans that pre-dated the merger announcement.
Bach said Northwest this October will shut down its station in Wilmington, Ohio, when Polar Air Cargo takes over the Anchorage-Wilmington route for DHL. Northwest is looking to the cities of Memphis, Dallas or Atlanta as replacement candidates, but most observers believe Atlanta will get the nod.
Bach anticipated that Northwest's freighter operation would remain following the merger. However, the cargo division, as part of a cost savings measure announced a day before the merger news, will reduce its 747-200-freighter fleet from 12 to 10 aircraft.
Bach said Northwest eventually would replace the 747-200 freighters with Northwest's 747-400s now in passenger service.
NWA Cargo also announced prior to the merger news plans to eliminate Guangzhou and Taipei from its freighter network. Osaka service will be retained. The new route rotation will be Anchorage-Seoul-Osaka-Anchorage. |
