And this just in from the Detroit Free Press about DL/NWA...

[General Lee]

Quote from the Detroit Free Press:

Earlier the Detroit Free Press reported that Delta's and Northwest's pilot unions has seen a merger proposal from the company and are unhappy with it.
Citing Doug Marshall, an aviation professor at the University of North Dakota, the Detroit newspaper said pilots are concerned their seniority won't be protected in the event of a merger. Furthermore, the deal appears anti-competitive, and may have trouble getting approval from the Department of Justice, the paper reported.





Bye Bye--General Lee

 

[General Lee]

Here's another article from yesterday....

Report: Delta, NWA Float Merger Agreement Before Pilots Unions--FNN

Merging Of Seniority Lists Key

We may be getting closer to the oft-rumored joining of Delta Air Lines and Northwest Airlines in the state of merged operations. According to two sources close to the talks, both sides shared details of a proposed merger agreement this weekend to their respective pilots unions.

Bloomberg reports union leaders with each carrier's chapter of the Air Line Pilots Association will study the proposals on how to merge both airlines' seniority lists -- a bone of contention with the last merger of two domestic airlines, the 2005 joining of US Airways and America West.

"The pilots' receptiveness to a merger is key," said Howard Wheeldon, senior strategist at BCG Partners LP in London. "If they're prepared to support a deal, it can go forward, and I think the sooner it happens the better. The markets want to see a merger between Northwest and Delta."

As ANN reported last week, some believe a formal announcement of a Delta/NWA merger could come as early as this week... although its unlikely ALPA executives would reach an agreement to support the merger in such a short time, given the stakes involved.

Labor support is seen as critical to the deal going forward. Pilots may be willing to support the deal, if it appears they'd be able to recoup some of the losses they incurred after both airlines filed for Chapter 11 bankruptcy on the same day in September 2005.

"Job losses and seniority issues are labor's chief concerns," said FTN Midwest Research Securities analyst Michael Derchin last week. "In return for support of consolidation, labor would likely demand stakes in the combined carriers, some job protection and higher wages."

If a Delta/NWA merger happens, the result would be the largest US airline by traffic volume... surpassing American Airlines. The deal would require regulatory approval, and could face anti-trust questions during that process.

As has become de rigueur throughout the rumored merger proceedings, neither Delta nor Northwest had any comment on the latest developments. Pilots union leaders didn't immediately return Bloomberg's calls for comments, either.


Bye Bye--General Lee

 

[Truckdriver]

Quote from the Detroit Free Press:

Earlier the Detroit Free Press reported that Delta's and Northwest's pilot unions has seen a merger proposal from the company and are unhappy with it. Bye Bye--General Lee

Not really a big surprise to me. I would have been more surprised if NWA ALPA and DALPA accepted the first proposed merger contract and list. I guess this is talking just about NWA, so maybe DALPA has been working with DAL and the merged contract and list is DALPA's idea and NWA ALPA doesn't like it. In any case, saying no to the first proposal is expected and good in my opinion if we are to get some real improvements out of this merger.

 

[On Your Six]

Reminds me of Yahoo and Microsoft. Yahoo balked at the initial offer to get a better offer later (that remains to be seen). I agree that both pilot groups have the leverage right now - they should use it to get an overall better deal....

 

[AA717driver]

Where do you put the guys flying the DC9's? A hundred airplanes worth of pilots don't just sit on reserve... TC

 

[jke406]

Where do you put the guys flying the DC9's? A hundred airplanes worth of pilots don't just sit on reserve... TC

aren't you the same guy who said the unions couldn't squash a merger?

at least their reserve guys won't be getting URPed.

don't you have your own contract issues to worry about? work on raising the bar over there, and not lowering it.

 

[JoeMerchant]

Apparantly the DAL and NWA MECs aren't confident in ALPA's merger policy......Surely it would protect everyone wouldn't it? ......Or is there a problem with it?

 

[DTW320]

Where do you put the guys flying the DC9's? A hundred airplanes worth of pilots don't just sit on reserve... TC

Are Scope clauses going away in the merged contract?

 

[Truckdriver]

Where do you put the guys flying the DC9's? A hundred airplanes worth of pilots don't just sit on reserve... TC

In the E-175's and CRJ-900's that are currently being flown or on order for both NWA and DAL. All those planes come to the combined mainline carrier and everyone keeps their jobs.

 

[737 Pylt]

Apparantly the DAL and NWA MECs aren't confident in ALPA's merger policy......Surely it would protect everyone wouldn't it? ......Or is there a problem with it?

That's why they're meeting and bargaining (something of which you are absolutely clueless). Not hiring a high priced lawyer to file a lawsuit!

737