U.S. Department of Transportation (DOT)



Detroit travelers saved an estimated $109 million last year, thanks to lower average domestic airfares during 2007 compared to 2005. According to U.S. Department of Transportation (DOT) numbers, Detroit was lower than 78.7 percent of the nation’s top 300 airports.
But with an imminent merger on the horizon between Northwest Airlines Corp. and Delta Airlines Inc., will metro Detroiters suffer the price of a ticket increase and inconvenience of reduced services?
No, say industry-analysts.
If, and more so when, the two companies merge, DTW passengers shouldn’t feel the impact for several months. Also, booking flights on either airline won’t be a problem, industry watchers and consumer experts say.
As Michigan’s largest air carrier, Northwest operates the largest hub at Metro Airport, the 11th busiest airport in the nation. Over 36 million in passenger traffic passed through the airport last. That’s approximately 75.5 percent compared to Delta’s 2 percent of passengers and ticket holder traffic. Moreover, should the deal close soon, it would take some time for consumers to feel the effect.
According to Terry Trippler a Minneapolis-based industry analyst, the changes will take some time to occur largely due to several stipulations of an impending merger deal. Federal regulators must conduct a comprehensive antitrust review to determine if combining the airlines will reduce competition, a process that at best may take until the end of the year.
Also, a review isn’t likely to get underway until after both companies’ boards of directors approve a deal and talks aren’t likely to commence until after the Air Line Pilots Association union resolves contract negotiations in terms of a seniority list that both airlines’ pilot groups can gel with.
“Detroit’s attractive airfares can be attributed to several factors,” said Lester Robinson, Wayne County Airport Authority CEO. “Primarily, we have worked very hard to generate more non-airline revenue over the past several years… supporting operations costs with non-airline revenue, DTW keeps operating costs low for airlines, providing a better bargain for airlines considering where to add new service.”
The current low fares of Metro Airport and expected ease-of-transition for Northwest and Delta passengers are great news considering DTW officials have plans to expand the airport with the grand opening of the North Terminal and proposed plans for a fifth parallel runway.
“Any good news would be welcome to get eyes off of Romulus and the issues their City Council is having,” says one local resident.
Trippler says that ticket holders don’t have to worry and should have confidence that the airlines will honor all tickets and it will be “business as usual” for both airlines.
“The phasing of the two companies will come gradually, they will of course let their customers know when steps are being made,” says Trippler.