...because it worked so well for AAA + HP...

[Cptnchia]

Looks like DAL management is getting ready to pull the plug. Seems that NWA can't figure out what they want and are looking to punt.

http://www.thestreet.com/_yahoo/news...FREE&cm_ite=NA

[Doug Taylor]

CHARLOTTE, N.C. -- The proposed merger between DeltaDALand Northwest NWA faces a potential collapse, sources say, for an unusual reason -- Northwest's pilots want to arbitrate seniority.

Delta pilots oppose arbitration, which was shown in the 2005 merger between US Airways and America West to be an unreliable method to protect pilots from severe career disruptions.

In the effort to merge Delta and Northwest, "there is a solution still to be had," said a person familiar with the situation. "The door is still open, but not forever. If Delta passes its time line, it will just move on." The window of opportunity is a couple of weeks, the person said.

Delta executives, in a memo to employees late Tuesday, declared that they haven't been able to put together a satisfactory merger agreement.

"To date, we have not arrived at a potential transaction that meets all of our principles," the memo, signed by CEO Richard Anderson and President Ed Bastion, read. "Rest assured that we will not complete a transaction unless all of these conditions are met. We have a strong stand-alone plan. We will maintain our attention on executing that plan while we continue to look at strategic alternatives."

The memo listed five requirements "that have to be met if there were to be consolidation with another airline." Among them is this: "That the seniority of our people is protected."

Additionally, they executives will require any combined airline to be called Delta and headquartered in Atlanta, that employee and retiree pension plans are maintained, "that the network is strengthened and our plans for international expansion are accelerated," and that "that there is even greater job security along with more career opportunities for our people."

The memo didn't mention Northwest or any other airline by name. In fact, Delta has never formally acknowledged that it is talking with Northwest, although the talks have been widely reported.

Before entering intense merger discussions with Northwest, Delta spoke with UAL'sUAUA United and withContinentalCAL, sources say.

When the Northwest deal began to fall into place, the two carriers sought to secure a pilot agreement in advance of their proposed merger, partially due to the close relationship between Delta and its pilots and partly due to a desire to avoid the pitfalls of the merger at US Airways.

There, seniority integration went to arbitration, and the arbitrator ruled that hundreds of pilots with 15 or more years at the former US Airways should be junior to pilots with just a few years at America West. The ruling led to a bitter dispute that now has pilots preparing to vote next month on whether to oust the Air Line Pilots Association as their representative.

In the Delta and Northwest pilot seniority integration effort, the principal problem is that many Delta pilots are younger, with fewer years of service than many Northwest pilots, yet have higher relative seniority due to attrition at the Atlanta-based carrier.

Also, while Delta pilots have a single leadership group, Northwest pilots have two -- the chapter leadership and a merger committee. It's unclear whether the two groups are in full agreement. They concurred on a package that includes pay increases for all pilots, but the merger committee wants an arbitrator to resolve seniority issues.

ALPA merger policy offers little assurance that seniority will be protected in arbitration, says aviation labor law attorney Lee Seham. He represents the US Airline Pilots Association, which is seeking to replace ALPA at US Airways.

In the US Airways pilot seniority hearing, the attorney for the America West pilots argued that seniority had been eliminated from ALPA merger policy in 1991 and therefore should not be considered. That argument appears to have strongly influenced the arbitrator's ruling, he says.


"In ALPA merger policy, seniority suffers from a negative legislative history, because if a seniority integration factor that was [once] recognized is later excised from the policy, that sends a loud message to the arbitrator," Seham says, adding that Northwest pilots "[should] not relegate their members to a crapshoot."

The arbitrator also took the position that US Airways, operating under bankruptcy protection, was in imminent danger of collapse. That wouldn't be a factor in Delta and Northwest arbitration.

The market has shown concern about Delta and Northwest since pilots failed to reach a deal over the weekend. On Monday, the Amex Airline Index rose slightly, but shares in Northwest lost 2.8%, while Delta fell 1.5%, partially reflecting investor doubts about the likelihood of a merger. All three declined on Tuesday.

"This is definitely working at its own pace," says William Swelbar, a researcher at MIT's International Center for Air Transportation. "But in the end, I am going to be surprised if Northwest pilots stand in the way of a deal."

[coa787]

Well, if that's the case, then I wonder who Delta is looking to next?

[Cptnchia]

Dagnabit Doug! I just posted that link, like a minute ago.

[Doug Taylor]

I have catlike quickness and kung fu grip.

[Doug Taylor]

And SuperMerge. The superhero-esque ability to combine threads in about four keystrokes.

[Minnesota_Flyer]

Methinks NW's pilots saved us all from great unpleasantness.

Seems odd to me airline mgmt would put the fate of the merger in the hands of employees who didn't really want it to happen anyway. Hmmmm.

[Cptnchia]

Originally Posted by Doug Taylor

I have catlike quickness and kung fu grip.

Originally Posted by Doug Taylor

And SuperMerge. The superhero-esque ability to combine threads in about four keystrokes.

I hear you're man candy too! Be careful, or those cat ranchers you fly with will want to know how many licks it takes to get to the center of a Doug Taylor.

[Doug Taylor]

"No Barbal, I will NOT go spa with you... I know you were hot stuff when the Russian Army swept through Prussia, but...."

[Velocipede]

Bring on the next victim!

[Kristie]

Originally Posted by Cptnchia

I hear you're man candy too! Be careful, or those cat ranchers you fly with will want to know how many licks it takes to get to the center of a Doug Taylor.

Man Candy as defined by one (1) girl....

they can try but you know what they say.... CTKH....

[H46Bubba]

Next week there will be a suprise announcement that Delta has purchased Alaska!

[CamYZ125]

This (and many other) thread(s) has made me wonder how many of Doug's 35,000+ posts have actually been serious!

[Kristie]

maybe 1 or 2....

[WalterSobchak]

Deals done between the two. They will wait it out or merge and then firgure it out.

Although I hope my sources are wrong and it falls apart.

[Kristie]

that's not a good plan...they should have it "figured out" before merge.

[kellwolf]

Originally Posted by Kristie

that's not a good plan...they should have it "figured out" before merge.

In the words of the immortal jtrain: Word.

'Cause UsAmericaAirwaysWest gets along so famously, and it's been QUITE sometime since they "merged."

[Velocipede]

The one thing Richard Anderson has learned from the AAA/AWA fiasco is that seniority list merger issues can sink the whole ship.

[SmoothLanderJ]

Originally Posted by Velocipede

The one thing Richard Anderson has learned from the AAA/AWA fiasco is that seniority list merger issues can sink the whole ship.

I agree. I'm no expert, but this very reason is why I dont think this merger will take place..........

[n77j]

Personally, i feel none of these merger prepositions are going to take place at the majors. Fuel prices go up, economy hits bottom, or business travel deeps down, one or two of the Majors strart freaking out and suggesting merger. When things reverse, all the merger talk is gone and life is back to normal. There are so many complications for merger amongst the legacies right now. I don't think the Fed will be willing to approve anyone of them.

On another note, the only airline i see on the horizon of being history is Frontier. Perhaps, Jetblue looking for another hot spot in Denver.

[Velocipede]

The Fed? What do they have to do with approving airline mergers? Perhaps you meant the DoJ.

[n77j]

Originally Posted by Velocipede

The Fed? What do they have to do with approving airline mergers? Perhaps you meant the DoJ.

Yes!