Sources Tell CBS Affiliate Pilots Couldn't Reach Agreement On Seniority

ANN REALTIME REPORTING 02.28.08 1900 EST: It all may have been for naught. Following weeks of reports -- and rumors -- surrounding a seemingly-imminent merger between Delta Air Lines and Northwest Airlines, the news has taken a decided turn for the worse... with one news organization going on record stating the deal is off.

Citing "multiple sources," WCCO-4 in Minneapolis, MN -- home to Northwest's headquarters -- states Delta and Northwest executives have "walked away" from the negotiations, due to continuing discord between the respective pilots union chapters at both carriers over seniority issues.

Other reports maintain the talks are only suspended, pending a possible resolution in talks between both sides. However, ANN has confirmed CBS News is sticking by its affiliate's story.

Officials at Delta and Northwest would neither confirm nor deny the WCCO report.

As with all the other reports regarding a Delta/NWA union -- we've lost count of just how many there have been at this point -- Aero-News will follow this story closely.

Original Report

1115 EST: The oft-reported looming merger between Delta Air Lines and Northwest Airlines may not be such a sure thing after all.

Industry analysts have said the merger appears to be unraveling... and now, the Seattle Post-Intelligencer quotes an open memo from Delta CEO Richard Anderson which says Delta has not reached terms that meets all of its principles.

The letter was also was signed by Delta President Ed Bastian. It says Delta expects a deal which keeps the Delta name, keeps the headquarters in Atlanta, protects seniority rights, job security and career opportunities of its employees, preserves pensions, and strengthens its international network.

"To date, we have not arrived at a potential transaction that meets all of our principles. Rest assured that we will not complete a transaction unless all of these conditions are met," the memo states, according to Reuters.

That's a tall order, said industry consultant Robert Mann... and is likely an ultimatum for executives at Northwest."This is kind of a two-by-four across the head of the Northwest merger committee to either get in line or be the one that killed the deal."

As ANN has reported, it was initially believed most major stipulations of a Delta/NWA merger had been ironed out... but negotiations between the carriers' respective chapters of the Air Line Pilots Association reportedly stalled over how to best integrate both airlines' seniority lists.

Despite reports of ongoing talks between the two sides, on Thursday CNN Money reported pilots haven't met to discuss the merger since February 21.

Furthermore, other employee groups at both carriers have also become increasingly vocal in their opposition to a merger.

Meanwhile, over at Northwest, CEO Doug Steenland issued a somewhat more optimistic memo which said, "consolidation among the network carriers is inevitable." That may be true throughout the industry... but it may not be the case for Delta and Northwest.

FMI: www.delta.com, www.nwa.com