The same-day bankruptcy filings by Delta Air Lines and Northwest Airlines this week may be coincidental, but some experts on Friday said the two carriers could be eyeing a merger that would see them re-emerge as the largest US airline.
Analysts said they see pros and cons to such a marriage.
"There is not excessive (route) overlap, which makes it an enticing possibility," said Joe Schwieterman, transportation expert at DePaul University. "(But) I think the integration problems would be staggering."
Representatives for both carriers had no comment on the merger speculation, which has been fueled by media reports.
Delta and Northwest filed for Chapter 11 protection from creditors on Wednesday, victims of soaring fuel prices and low-cost competition.
United Airlines and US Airways are already bankrupt, and many in the industry are grappling with difficult labor issues, including high wage and benefit costs.
At least one carrier is using a merger as a lifeline to stay in business. US Airways on Friday received bankruptcy court clearance to exit Chapter 11, having agreed to combine with low-cost carrier America West.
Analysts acknowledged that Delta's domestic southeast routes would balance well with Northwest's Midwest franchise. Internationally, Delta has prominence on Atlantic routes, while Northwest has more flights to the Pacific region.
However, the companies' mismatched aircraft fleets could pose innumerable problems for a combination. The two carriers operate a combined fleet of more than 1,200 aircraft. But the only aircraft model the two have in common is the Boeing 757, one analyst said.
"Intermingling those fleets or working on a fleet plan would be billions (of dollars). Training pilots would be billions," said airline consultant Michael Boyd. "They could be considering it. But at the end of the day, they would end up with a limping mess."
Airline consultant Robert Mann added that for Delta and Northwest to team up, they would need an impressive amount of exit financing as well as management with a vision.
It would be difficult for two major airlines -- potentially creating the largest US carrier ahead of American Airlines -- to attract the needed financing in an era of low-cost competition, Mann said.
The two carriers may well take the merger route, but not necessarily together, said Anthony Sabino, airline expert and professor at St. John's University.
Sabino said the airline industry, plagued by overcapacity, is crying out for a merger or a liquidation that would take some seats out of the air, adding that a Delta and Northwest coupling is just one of many possibilities.
"Certainly this is something that people are thinking about, that they should be thinking about," Sabino said. "These are troubled airlines and they have to be thinking of ways to get out of trouble."
