They're Not Fans

Despite repeated assurances by executives at Delta Air Lines and United Airlines last week's rumors of a proposed merger of the two carriers were just that -- rumors -- fallout from the news continues to ripple through the ranks at the Atlanta-based carrier.

On Tuesday, pilots at Delta called the trial balloon posed by hedge fund Pardus Capital Management LP a "poisonous vision" of Delta's future, and vowed any such attempt at consolidation in that manner would die without the union's support.

As ANN reported, news of an impending merger surfaced November 14, with The Associated Press quoting an unnamed source who described a combined United-Delta airline carrying forth under the United name, with headquarters in Chicago and an operations center in Atlanta. The source said both sides expressed a "sense of urgency" to the talks.

After letting most of the day lapse without comment, both sides issued harsh rebukes late in the evening of November 14. The next day, Delta CEO Richard Anderson followed up his vehement denials with assertions before a House transportation subcommittee -- telling Georgia Congressman Lyn Westmoreland he "was as surprised as you were" about the speculation.

This week, Delta pilots union chairman Lee Moak told Reuters while talk of a Delta/United merger may have subsided, the issue hasn't gone away among the carrier's rank-and-file.

"Pardus' demand for a merger between Delta and United is a poisonous vision built upon an artificial timeline and focused primarily on a financial transaction," said Moak. "As we demonstrated in the case of the US Airways assault on our company, we can stop a consolidating event that is not in our best interests, and we will treat the demands by Pardus no less seriously than those presented by US Airways last year."

Despite that statement, Moak did not plainly state pilots would attempt to block an attempt by Pardus -- which owns shares in both Delta and United -- to force a merger between the two... but he did question the wisdom of such efforts.

"I don't like Pardus' tactics. This is a very complex, difficult strategic decision that will have effects for many years," Moak said, adding any attempt at consolidation would have to be handled very carefully "or else we'll all end up in bankruptcy again."

FMI: www.delta.com, www.alpa.org