Delta / NWA merger?

Airport seen as a prized piece in any NWA merger

Excerpt:

A merger between Delta Air Lines and Northwest Airlines could begin a dramatic reshaping of the aviation industry but lead to only small changes in the importance of Minneapolis-St. Paul International Airport to the combined carrier.

Comment: A possible Delta - Northwest merger has been long rumored. Delta possibly will choose United as its partner. This could be good for fliers out of MSP! More from MPR below:

If NWA merges, what can travellers expect?

Excerpt:

When Northwest emerged from bankruptcy last May, airline CEO Doug Steenland affirmed the carrier's commitment to keep its corporate headquarters -- and a major hub -- in the Twin Cities.

"We're committed. We sort of re-said our vows at the time of the renegotiation of the Minneapolis lease," said Steenland.

That lease and other agreements with the Metropolitan Airports Commission require Northwest to keep its headquarters and a hub in the Twin Cities. Airport commission spokesman Patrick Hogan says nothing is guaranteed. But he's confident a Northwest merger won't mean service cuts for Twin Cities travelers.

"The airline has stated and restated its commitment to its hub and headquarters here in Minnesota. Obviously, whenever you have mergers or acquisitions, there are so many different variables, it certainly is enough to make anybody nervous. But we do think we are in pretty good shape in terms of having some leverage to encourage them to keep that hub and headquarters here."

That leverage includes Northwest's obligation to lease about 100 airport gates through 2020. The airport commission says Northwest can't avoid paying for those gates. And then there's $260 million Northwest owes the commission. If Northwest tries to wiggle out of its commitments, the commission could seek immediate repayment of the loan. Minneapolis-based travel expert Terry Trippler says it's possible a merger could lead to fewer international flights out of the Twin Cites. But Trippler doesn't see Northwest and a merger partner cutting domestic flights, given the location and profitability of the Twin Cities airport.

"I can't see the domestic routes being reduced. If you reduce the Minneapolis-St. Paul hub, who is going to fly from Pierre to Chicago? Or Watertown to Chicago? Or Rapid City to Chicago, for that matter. This hub has to remain here. And this has consistently been Northwest's most profitable hub," says Trippler.