Woodside Travel Trust Expresses Concern Over Proposed Continental Airlines, Northwest Airlines Merger

Strategic Insights -

Woodside Travel Trust, a global travel management company, has voiced its opposition to the proposed merger between Continental Airlines and Northwest Airlines, arguing that it would lead to reduced competition and higher airfares for travelers. Ivan Michael Schaeffer, President and CEO of Woodside Travel Trust, has written to the U.S. Department of Justice (DOJ) and the U.S. Department of Transportation expressing the company's concerns. Schaeffer has called on the DOJ to delay the merger until the case can be heard in federal court, warning that the merger would result in fewer carriers for passengers to choose from and higher airfares across the board.

Key Takeaways:

  • Woodside Travel Trust, with 133 partner agencies in 76 countries, is concerned about the proposed merger between Continental Airlines and Northwest Airlines, citing reduced competition and higher airfares as major concerns.
  • Ivan Michael Schaeffer, President and CEO of Woodside Travel Trust, has written to the DOJ and the U.S. Department of Transportation, urging them to delay the merger until the case can be heard in federal court.
  • Schaeffer argues that the merger would result in fewer carriers for passengers to choose from, exacerbating the already competitive airline market, and would lead to higher airfares across the board.
  • Woodside Travel Trust has praised the DOJ's attempt to prevent the merger, which they believe would ultimately harm the traveling public, particularly in the Midwestern United States where Northwest and Continental compete on many routes.
  • The company has also commended the U.S. Department of Transportation's efforts to promote airline competition, citing the issuance of anti-competitive guidelines and its leadership role in deregulation efforts.

Statistics:

  • Woodside Travel Trust has 133 partner agencies in 76 countries, with 5,322 travel agency locations and an average annual sales volume of over $19.4 billion USD.
  • The Midwestern United States is a critical market for both Northwest and Continental, with multiple routes and a large passenger base.
  • The proposed merger would create one of the largest airlines in the world, with a combined market value of over $10 billion USD.

Sources:

  • PRNewswire (October 26, 2023)
  • United States Department of Justice (October 23, 2023)
  • United States Department of Transportation ( Date unavailable )