Here's just a guess: Both sides in their neutral corners reflecting. A new round will pop up egged on by management. Both sides have showed their starting proposals. Its just good negotating. They will be back. There is too much money on the table. Both sides will agree that the junior guys need to be skrewed more equally. Then a deal can be done.
Is this a negotiating tactic or did they really have a deadline to get this deal done? My unofficial poll of the other employees groups has the overwhelming majority relieved this thing may die. Anyone else?
Bloomberg
Delta Disbands Outside Advisers on Northwest Deal, People Say
By Mary Jane Credeur and Mary Schlangenstein
Feb. 29 (Bloomberg) -- Delta Air Lines Inc. disbanded a group of outside advisers hired to help craft a merger with Northwest Airlines Corp. after the carriers' pilots failed to reach an agreement on meshing seniority lists, people with knowledge of the matter said.
Delta told its dozens of external aides they won't be needed unless the pilots resolve their differences, said the people, who asked not to be identified because the talks are private. The advisers had been on call around the clock last week because the airlines thought a pilots' accord and completion of the merger were imminent, one of the people said.
Merger planners at the two carriers suspended daily phone meetings a week ago, after the pilots broke off their seniority talks, the people said. A combination of Delta and Northwest would form the world's largest airline, overtaking AMR Corp.'s American Airlines.
``There's an aura of doubt around this deal now, a creeping malaise,'' said Stuart Klaskin of KKC Aviation Consulting Inc. in Miami, who has worked on past airline mergers.
Delta must have a deal that protects pilots' seniority, Chief Financial Officer Ed Bastian told reporters in Seattle today. ``If we can't get those assurances, we won't'' enter into a merger, he said.
Shares Fall
Shares of Delta, the third-biggest U.S. airline by traffic, and No. 5 Northwest have dropped more than 20 percent since Feb. 20 on concern that a merger is in jeopardy.
Seniority is one of the key remaining issues for the airlines, who have agreed that the combined carrier will retain the Delta name, be based at its Atlanta headquarters, and be run by Delta Chief Executive Officer Richard Anderson, people familiar with the discussions have said.
Spokeswomen for Delta and Eagan, Minnesota-based Northwest declined to comment. Delta pilots spokeswoman Kelly Regus declined to comment, and Matt Coons, a spokesman for the Northwest pilots' union, didn't return calls.
The disbanding of Delta's advisers may be part of a strategy to pressure pilots by suggesting a merger might not happen, said Roger King, a debt analyst at CreditSights Inc. in New York. Management has agreed to give the pilots a pay package and equity stake valued at $2 billion, people familiar with the matter said earlier this week.
`Biggest Bluff'
``The biggest bluff to call is to go ahead and do a definitive merger and deal with the seniority list later,'' King said. ``Walking away and taking the money off the table is the next best thing.''
Seniority determines job provisions ranging from compensation to the planes pilots fly. Hundreds of Delta pilots took early retirement before the carrier's 2005 bankruptcy filing to get lump-sum pension payouts, leaving Delta with a less-senior pilot workforce.
Leaders of Northwest's chapter of the Air Line Pilots Association ended a two-day meeting on Feb. 22 without voting on a report on ``cooperative merger exploration,'' according to the union's Web site. No new talks have been scheduled, four people familiar with the matter said earlier this week.
Northwest union negotiators want their 5,000 pilots' seniority to be based on hire date, while Delta's ALPA chiefs want consideration of the plane sizes and routes now flown by that airline's 7,000 pilots. ALPA is the only major unionized group at Delta.
Delta fell 74 cents to $13.35 at 402 p.m. in New York Stock Exchange composite trading, the third straight daily decline of more than 5 percent. Northwest slid 57 cents, or 4.1 percent, to $13.43. It's fallen six of the past seven days.