Nathan Grawe Interviewed on MPR Regarding NWA Merger
Nathan Grawe, associate professor of economics, was interviewed by Minnesota Public Radio regarding the proposed merger between Eagan, Minn.-based Northwest Airlines and Atlanta-based Delta Airlines. “The argument they (Northwest and Delta) are trying to make is that by providing a better network for consumers, they will increase revenues and so they don’t have to touch the cost side. And if you look at what happened to Delta and Northwest stock today, I think what you saw is investors were frankly disappointed by what they heard because they thought the whole point of the merger was to weed out unnecessary costs and we could gain economy of scale by having a larger company and eliminating redundancy,” he says. You can download the entire interview as a podcast from the MPR website.
Nathan Grawe, associate professor of economics, was interviewed by Minnesota Public Radio regarding the proposed merger between Eagan, Minn.-based Northwest Airlines and Atlanta-based Delta Airlines. “The argument they (Northwest and Delta) are trying to make is that by providing a better network for consumers, they will increase revenues and so they don’t have to touch the cost side. And if you look at what happened to Delta and Northwest stock today, I think what you saw is investors were frankly disappointed by what they heard because they thought the whole point of the merger was to weed out unnecessary costs and we could gain economy of scale by having a larger company and eliminating redundancy,” he says. You can download the entire interview as a podcast from the MPR website.