Northwest-Delta merger could increase airfare

Flights to and from Lansing could be more expensive if a proposed merger between Northwest Airlines Corp. and Delta Air Lines Inc. is approved.

The merger would create the world’s largest airline carrier and the Delta name would be retained.

The total value of the company would be about $17.7 billion, which is the combined market value and net debt of the two companies. Delta doesn’t plan to close either of the two airlines’ hubs.

“Experts have said that whenever there is a merger, it results in less service, fewer flights, and more expensive airfares,” said Robert Kolt, spokesman for Capital City Airport in Lansing and an MSU public relations professor. “So it’s not necessarily good for the passenger, but it’s good for the airline.”

Northwest, which is the largest carrier at Capital City Airport, flies seven flights per day through Lansing to Minneapolis and Detroit.

The merger, which was announced Monday, might not produce noticeable effects until sometime next year because it likely won’t be finalized until the end of the year.

Family and child ecology sophomore Nichole Wickens said when she goes home to Harrisburg, Pa., she normally flies Southwest Airlines, but would be worried if she saw ticket prices go up.

“I don’t know how I’m going to get home,” Wickens said.

She said she goes home about three or four times per year and pays about $130 each time.

Officials from the Office of Study Abroad said they are unsure of how the merger will affect them until it is approved.

“We’re in a wait-and-see pattern until we see the effects on scheduling and prices,” said Cindy Chalou, the Office of Study Abroad associate director.

As of April 3, more than 2,300 students had applied for study abroad, an increase of about 200 applications from the same time last year.

“The cost of an airline ticket is a significant portion of the cost of study abroad,” Chalou said. “At this point, we’re not concerned. When the merger is complete, it could impact the summer of 2009, but we’ll wait and see.”

High gas prices and the struggling economy have forced some airlines to declare bankruptcy or consider mergers. In the past year, the number of Capital City Airport passengers has declined about 40 percent because of airlines pulling services from the airport, Kolt said.

“People in Mid-Michigan really want to fly from Lansing,” he said. “We don’t have enough service to meet the demand.”

The cost of the extra drive and parking to fly out of Detroit can cost Lansing residents another $200, Kolt said. The airport is pitching more airlines to service Lansing and considering more charter services, he said.

“Capital City Airport is a brilliant asset to the community,” Kolt said. “Lansing travelers will not be happy if they have to drive to other airports because we don’t have the service.”

The Associated Press contributed to this story.