Two-Day Meeting Begins Thursday

The Delta Airlines Board of Directors reportedly will hold a meeting Thursday and Friday. Wouldn't it be great to be a fly on the wall, and find out firsthand how the merger idea is playing?

The Atlanta Journal-Constitution reports a two-day Delta board meeting comes about a week after Northwest suggested the two carriers proceed with a merger pact without waiting for pilots to work out a seniority plan for an integrated workforce.

As ANN has reported, both airlines offered pilots pay raises and stock if they worked out their differences ahead of time to avoid becoming US Airways, The Sequel. The pilots didn't get it done, and the companies would presumably save the costs of the incentives if they merged now.

Calyon Securities analyst Ray Neidl says he is "sure" Delta's board will discuss Northwest's offer, though he adds "I'm betting no deal without the pilots.

"They've got a very good relationship with their pilots and they don't want to endanger that relationship," Neidl added.

Pardus Capital Management, a New York-based investment fund which held seven million Delta shares at year-end, has been pushing Delta to merge to fight rising fuel costs. The company told investors this week it's freezing investor redemptions because of the stock's recent plunge in value.

Neither carrier has yet acknowledged merger talks. For that matter, Delta won't even officially acknowledge Thursday's planned meeting.

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