Two Major Airlines Merge
Friday, December 12, 2008
The US Department of Justice has given its approval to the proposed Delta Airlines - Northwest Airlines merger. The Department of Justic closed its six-month investigation into the proposed merger with the announcement that it is "likely to produce substantial and credible efficiencies that will benefit US consumers and is not likely to substantially lessen competition."
India's two biggest private airlines recently announced a major alliance to help cut costs. Jet Airways and Kingfisher together have more than 50% of domestic capacity in seven of top eight domestic airports in India. There are been a number of mergers there recently: Jet Airways acquired Air Sahara, now called Jet Lite. Then Kingfisher merged with Air Deccan and is now called Kingfisher Red. Domestic air travel in India grew by 40% in 2006 and 30% in 2007.
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