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.

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