Propeller Spin

There's been much talk about the recently announced merger between Delta and Northwest here in the small apple. It's really revealing to see a town so concerned for a really crappy airline. (Let us not forget about Jan 1999 incident that makes Jet Blue's recent passenger stranding look like a trip to the day spa.)

What's interesting to me is how the Delta/NWA execs are spinning the reasons for the airline merger, and how the media and government are responding to it. The execs are walking a tight rope of avoiding public backlash and political inquiry, which is probably why they told securities analysts today that they're not reducing capacity (which in turn sunk both stocks). Let's be honest here - the industry is at overcapacity, and this is a signal for softer competition (lowered capacity and higher prices) among industry players.

While I understand the nuance and sensitivity needed, I can't help but picture Ayn Rand (yes I'm still reading Atlas Shrugged) cringing as Senators and NPR hosts shout about what the airline owes the state and its workers. Profits people. Profits.