Delta-Northwest Deal at Risk

[skywdriver]

http://biz.yahoo.com/ap/080220/delta_northwest.html?.v=2

Keep up the good work guys, hopefully this thing won't happen!

 

[General Lee]

AP
Officials: Delta-Northwest Deal at Risk
Tuesday February 19, 11:11 pm ET
By Harry R. Weber, AP Business Writer
Officials: Delta-Northwest Combination Deal in Jeopardy


ATLANTA (AP) -- Two people close to combination talks between Delta Air Lines and Northwest Airlines say the $20 billion deal is in "serious jeopardy" because of an inability by the pilots unions from both companies to reach an agreement on blending their seniority lists.
The people asked not to be named because of the sensitive stage of the talks. They say the pilots unions have agreed on a comprehensive joint contract, but they are unable to agree to how seniority for the 12,000 pilots would work under a combined carrier.

The people said late Tuesday that the pilot talks are expected to continue Wednesday, but if no agreement is reached, the combination of the two airlines is in "serious jeopardy."



Who said our DL pilots were just going to roll over? I hope not.... It's gotta be fair....

Bye Bye--General Lee

 

[General Lee]

This was from the AJC at about 10pm....

Pilots could get equity stake for approving Delta deal

By JIM THARPE, RACHEL TOBIN RAMOS
The Atlanta Journal-Constitution

Published on: 02/20/08

Pilots for Delta and Northwest airlines are counting on a big payday as the companies make their final approach in a proposed merger to create the world's largest carrier.

The boards of both airlines could meet as early as Wednesday to formally consider the deal, which would create a globe-spanning airline headquartered in Atlanta with unparalleled access to routes in the United States, Europe, South America, Africa and Asia.

An announcement is widely anticipated Wednesday or Thursday, setting the stage for consideration by the U.S. Department of Justice, which would have to approve the deal. A Delta-Northwest combination could spark further consolidation in the financially strapped airline industry, which on Tuesday saw oil top the $100-a-barrel mark.

"It will be one hell of an airline," said Minneapolis-based airline consultant Terry Trippler.

The deal still could fall apart, or it could be shot down by the companies' boards. The 11,000 pilots for the two airlines are key to the final deal. The airlines want to ensure their support before moving ahead with a deal to avoid pitfalls of past industry mergers.

US Airways and AmericaWest did not get pre-merger agreements from their pilots before they combined in 2005. Today, those pilots still are working under separate seniority lists and contracts, weighing down full integration of the companies' operations.

There were indications Tuesday that Delta and Northwest pilots stand to profit handsomely for their cooperation in a merger plan.

A longtime Delta pilot briefed on the talks said the plan created by union negotiators would give each pilot a $50,000 to $100,000 stake in the new company, but only if pilot unions for both airlines ratify the agreement.

That would amount to up to $1 billion, or 5 percent to 7 percent of the value of the new company, which would be paid out either in cash or stock.

That is a huge incentive, the pilot said, especially after taking pay cuts during Delta's bankruptcy. The carrier emerged from Chapter 11 protection last spring.

"The pilots wanted to use their cooperation and influence to recuperate lost wages and benefits in the bankruptcy," the Delta pilot said.

Salaries for the Northwest pilots would rise 10 percent to 15 percent to bring them up to par with Delta pilots.

Meanwhile, Delta pilots would get concessions on seniority, the pilot said. Seniority determines which planes pilots qualify to fly and, therefore, their pay rate.

Delta pilots flying the airline's biggest jets have fewer years on the job, on average, than their counterparts at Northwest. They have feared Northwest pilots with more years in the air could bump them out of these coveted cockpits.

But under the agreement reached by union negotiators, a Delta pilot hired in 1988 might have the same seniority as a Northwest pilot hired in 1985, the pilot said. Delta pilots also could get a very modest hourly pay raise in the deal, the pilot said.

Both groups want to take advantage of the global reach of their combined airline and look good compared with their competition, the pilot said.

He said US Airways and America West pilots still are "fighting with hatred" over their placement on the seniority list.

The next step for the pilots unions is for their elected officials to agree to the terms reached by the negotiators. If union officials like the deal, they would send it to their pilot membership for a vote.

The vote to ratify that agreement probably would come after a merger is announced.



Bye Bye--General Lee

 

[Noserider76]

Best news I've heard all day. I'm sure they'll go ahead without pilot cooperation but it would be nice to see this thing sheet canned. They're trying to pass this off as good for the employees and offering hush money to the MECs but the only people this is good for is management and the investors. Career stagnation and years of more uncertainty for the rest of us.

 

[skywdriver]

I guess a lot can happen in a little over an hour! Goes to show what the media reports are worth. Pretty sure things didn't go from "almost certain deal announced Thur" to in "serious jeopardy" in an hour.

 

[tomgoodman]

High Pressure Leak

Excerpt:

ATLANTA (AP) -- A $20 billion deal to combine Delta Air Lines Inc. and Northwest Airlines Corp. was in "serious jeopardy" late Tuesday because the pilots unions from both companies were unable to reach an agreement on blending their seniority lists, two people close to talks told The Associated Press.

The people said the pilots unions have agreed on a comprehensive joint contract, but they are unable to agree to how seniority for the 12,000 pilots would work under a combined carrier. The people asked not to be named because of the sensitive stage of the talks.

An obvious leak from impatient management, perhaps an outright bluff. The pilots should take all the time they need.

 

[NuGuy]

Heyas,

Contrary to news reports, most especially the AJC article, there is NO deal regarding integration, not even remotely. There are some VERY sticky points, and both sides are digging in.

There is a lot of propoganda getting published as "news", which is no different than management "negotiating in the press" during contract talks.

Two things are certain. One, there is a LOT of moolah at stake for everyone at the table, and two, both the NWA and DAL teams are working for the BEST possible deal for their sides while trying to come to an agreement that is remotely fair.

This is the crunch time.

Nu

 

[General Lee]

Could this be a deal breaker? You bettcha hosers...

Heyas,

Contrary to news reports, most especially the AJC article, there is NO deal regarding integration, not even remotely. There are some VERY sticky points, and both sides are digging in.

There is a lot of propoganda getting published as "news", which is no different than management "negotiating in the press" during contract talks.

Two things are certain. One, there is a LOT of moolah at stake for everyone at the table, and two, both the NWA and DAL teams are working for the BEST possible deal for their sides while trying to come to an agreement that is remotely fair.

This is the crunch time.

Nu

From AP

Delta and Northwest don't need a labor agreement between their pilots unions before announcing a combination, but having one in place now could help them speed up the integration of the two carriers down the line.

One of the people close to the talks said a small group of Northwest seniority list pilot negotiators want thousands of young Delta pilots to go to the bottom of the combined seniority list as part of agreeing to a deal on seniority. The person said that was a major hang-up.(YA THINK???) A spokesman for the Northwest pilots union, Greg Rizzuto, did not immediately return a call and a page Tuesday night to his cell phone seeking comment.



Let's hope this is all worked out fairly......What do you think Nu? Maybe they are right since our bottom couple THOUSAND pilots are all YOUNG and recently graduated from Embry Riddle.... You need to call Greg Rizzuto and straighten him out....


Bye Bye--General Lee

 

[120% Torque]

From AP

Delta and Northwest don't need a labor agreement between their pilots unions before announcing a combination, but having one in place now could help them speed up the integration of the two carriers down the line.

One of the people close to the talks said a small group of Northwest seniority list pilot negotiators want thousands of young Delta pilots to go to the bottom of the combined seniority list as part of agreeing to a deal on seniority. The person said that was a major hang-up. A spokesman for the Northwest pilots union, Greg Rizzuto, did not immediately return a call and a page Tuesday night to his cell phone seeking comment.



Let's hope this is all worked out fairly......


Bye Bye--General Lee

Priceless. The guys flyin the DC9's want Delta guys to fill their seats while they go to the ER flyin to Europe and based out of ATL. This could get ugly.

 

[General Lee]

Priceless. The guys flyin the DC9's want Delta guys to fill their seats while they go to the ER flyin to Europe and based out of ATL. This could get ugly.

That's not really how it works, unless there are displacements. Sounds like long fences could be a part of any plan, including around the DC9s...

It looks like our MEC has not folded, so that is a good thing. Let's just see how it progresses, it has been interesting so far no doubt....

Bye Bye--General Lee