United Airlines and Delta have been talking about a merger of the two airlines. Both airlines are denying it, but it is all over the media. United and Delta are one of the two largest airlines in the United States. They would keep the United name and drop Delta. Delta is denying these published reports and advising the public that there is no talk about a merger in the near future. On October 12, 2006, the CEO of Delta, Gerald Grinstein that he had possible “feelers” from United about a merger. There is nothing official yet, but we will have to wait and see in the near future.
If these two large airlines merge, they might be taking a risky business. There is a sense of urgency in the most recent talks. Rushing into a merger is not good for either company. United Airlines is the second largest airline and Delta is the third, so why take this risk? There will be a lot of layoffs and relocation of employees. In this economy, we can not risk more people on unemployment.
I am sure the merger will happen. When two big companies even start talking, it usually means there is some truth to the merger. There will be many financial transactions that they would have to clear up, but after that it will be announced. The only thing I do not like about mergers is that employees do suffer, whether it be relocating to keep their job with the airline or involuntary fired. Though there is one good thing about this merger if it happens, the airfares will probably go down and more people will be able to go on vacation.
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