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Fri, Mar 14, 2008

Delta, NWA Pilots 'In Communication', But Formal Talks Still Off

And Now, Merger Update #3,476

Citing tips from three people familiar with the talks, the Associated Press is reporting that meetings about seniority issues between representatives of pilots at Delta and Northwest Airlines are on hiatus, but that the two sides are still in communication.

Both airlines have seen their stock prices hammered as investors lose faith a merger can be accomplished this year. Sources close to management at both airlines have suggested that a merger won't be pursued until a plan exists to harmoniously combine workforces.

Investors want the airlines to merge to find cost efficiencies as fuel prices rise. Analysts have suggested to pilots they need to get on board or risk a future working for a non-competitive employer.

Pilots have also heard industry forecasts predicting severe labor shortages will give their unions significant negotiating clout for at least the next decade.

Stay tuned!

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

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