Fri, Apr 11, 2008
Real Movement On The Northwest Merger Front?
This might just be the break those wanting to see Delta Air
Lines merge with Northwest Airlines have been waiting for. On
Friday, management at the Atlanta-based carrier agreed in principle
with pilots on a contract that would allow an oft-speculated merger
with Northwest to proceed.
According to The Associated Press, unnamed sources close to the
talks say an accord was reached Thursday that would raise pilot
pay, and give them a stake in the combined carrier, should a merger
with Northwest proceed. That deal would keep the combined airline's
headquarters in Atlanta, and would retain Delta's name.
What's missing from the deal, however, is the inclusion of
pilots at Northwest. As ANN reported, merger talks
fell apart after pilots at Delta and Northwest -- each represented
by a separate branch of the Air Line Pilots Association -- failed
to reach terms in February on a deal to combine seniority lists if
the merger were to proceed. Both sides had wanted at least
tentative agreement on such terms... but they failed to reach
it.
As oil prices continue to climb, however, both Delta and
Northwest appear increasingly eager to proceed with a merger
anyway. To that end, Delta reportedly went to its 7,000 pilots, and
worked with them to secure a deal. The hope is Northwest's 5,000
pilots would later agree to join that contract once the merger has
gone through.
That's a dicey proposition, said airline and union consultant
Robert Mann. "It is hard to anticipate Northwest pilots' level of
interest in agreeing to an unknown Delta seniority integration
proposal."
Given the only other option appears to be permanent dissolution
of merger talks, however... the Delta deal might just be as good as
it gets for everyone involved.
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