E-MAIL CHRIS   PRINT   2008 COLUMNS   ARCHIVES   SEARCH ARCHIVES MERGER MANIA? WATCH YOUR WALLET. By Chris Barnett February 21, 2008 -- Hold on to your wallet, brace yourself for confusion, prepare for sour faces in-flight and get used to tighter seating in smaller planes on longer trips. After all, airline mergers are in the air. By the time you read this, Delta Air Lines and Northwest Airlines may be engaged for a corporate marriage that will make it the world's largest airline by passenger traffic. But don't expect a festive reception. Even if the two airlines' 11,000 unionized pilots can agree on a new joint contract, there will be no joy on the ground or in the air. Those delicate discussions are always fraught with squabbles over seniority, pay and time off. Meanwhile, Continental and United have been talking merger and American and Continental may have also discussed a consolidation. In fact, it's logical to assume that each of the Big Six has been talking to each other for many days, or even weeks. All of the above might be great news for investors in the airlines who've taken a beating in recent years. But for those of us who invest only in tickets or are invested in the Big Six frequent flyer programs, airline mergers are misery. Fusing two companies, two workforces, two "cultures," two sets of work rules and two or more pay levels is treacherous. Just ask the employees--and the passengers--who work for or fly with US Airways, which merged with America West in 2005. More than two years later, the airline is like two countries that share a common border and despise each other. "Easties," as the old US Airways employees call themselves today, and "Westies," the former America West workers, say that there may never be a harmonious blending of the two carriers. Business travelers are hardly thrilled by the shrinking number of major U.S. airlines and see something sinister afoot. "There are already fewer routes to choose from and [the mergers are] another way to reduce routes, raise prices, have less seats to choose from, offer fewer frequent flyer reward seats and less flexible schedules," says Leigh Anne Varney, president of a San Francisco consultancy. Varney has been a member of United's Mileage Plus frequent flyer program for 21 years and the miles once dictated her schedule. "I used to make decisions based on the frequent flyer miles [I could earn]," she says. "But now I don't trust the program and look for the best price for a nonstop that fits my schedule." San Francisco financial services executive Joel Hammer isn't really bothered by mergers "because large domestic air service has become essentially a commodity business." But he also knocks United, "which once prided itself on the best service and customer rapport." Today, Hammer describes United as "horrible and pricey" and says that he's "much more price conscious. I fly JetBlue, Virgin America and Southwest." Hammer think mergers of major carriers will hurt employees more than passengers, who've already experienced--and accepted--substandard service. Airline consultants are not as flummoxed by the consolidation. A Northwest and Delta deal "will be the anti-merger," says Mike Boyd, the president of Boyd Group Aviation Consulting. "Mergers usually mean putting two things together and having less than the sum of their parts. This merger may put two airlines together to get a bigger, stronger, more consumer-oriented network." I can hardly see Northwest becoming more gracious in their passenger and employee treatment. And Delta's chief executive is Richard Anderson, a lawyer who logged 14 years at Northwest. But as Boyd points out, Delta and Northwest have had a code-share and marketing alliance for nearly four years and are not corporate strangers. Meantime, get ready to fly longer distances in smaller planes with the Delta-Northwest hookup. Both airlines are expanding internationally and their bigger jets will be shifted to overseas routes--a trend that's hardly new among U.S. airlines. Domestic routes that won't be cut will be served with smaller regional jets. We haven't seen a coast-to-coast flight in a tiny, cramped 39-passenger regional jet from the major airlines--yet--but if consolidation continues, get ready for it.

ABOUT CHRIS BARNETT Chris Barnett writes about business-travel tactics and strategies that save time and money and help minimize hassles. He is based in San Francisco and has written for a wide variety of major newspapers and national magazines. Barnett on Business Travel is syndicated by Copley News Service. THE FINE PRINT Joe Brancatelli makes this space available to Chris Barnett in the spirit of free speech and to help encourage editorial diversity and the wider discussion of important travel issues. All of the opinions and material in this column are the sole property of Barnett. This material may not be reproduced in any form without the express permission of Chris Barnett. A NOTE TO EDITORS Barnett on Business Travel is available biweekly through Copley News Service. Contact: Glenda Winders. This column is Copyright © 2008 by Chris Barnett. JoeSentMe is Copyright © 2008 by Joe Brancatelli. All rights reserved.