WateryGrave
Blue Koolaid Drinker
- Joined
- Apr 28, 2005
- Posts
- 286
http://news.yahoo.com/s/nm/20080410/bs_nm/delta_pilots_dc_1
Thu Apr 10, 7:18 PM ET WASHINGTON (Reuters) - Delta Air Lines (DAL.N) and its pilots union have tentatively agreed on a contract that would give pilots a pay raise and an equity stake if the carrier were to merge with Northwest Airlines (NWA.N), according to a Bloomberg report late on Thursday.
Northwest and Delta would not confirm the report that Delta had negotiated a separate deal with its 7,000 pilots. Northwest's 5,000 pilots would be asked to join under a single contract later.
The apparent deal is another sign that Delta and Northwest could move forward with their plans to create the world's largest airline as early as next week.
The deal does not resolve the sticking point that prevented Delta and Northwest from proposing a merger in the first place last month -- how pilots from both airlines would resolve seniority issues and work together under one company.
In fact, the two pilot groups had agreed during their negotiations on seniority to back a proposal for higher pay and a stake in the combined carrier.
Sorting out seniority could take months to complete or even wait until after a merger is finalized.
Both pilot groups, represented by the Air Line Pilots Association (ALPA), have said they would not support consolidation unless terms of a deal were favorable to them.
Bloomberg, citing people familiar with the talks, said the combined company would retain the Delta name, its Atlanta headquarters, and be run by Delta Chief Executive Richard Anderson. Those three elements were part of the original plan as well.
The merger would include a small premium for Northwest investors, Bloomberg reported.
On the New York Stock Exchange, Delta closed up 9.4 percent at $9.75, while Northwest climbed 12.6 percent to $10.87.
(Reporting by John Crawley, editing by Richard Chang)
Its almost official....
Thu Apr 10, 7:18 PM ET WASHINGTON (Reuters) - Delta Air Lines (DAL.N) and its pilots union have tentatively agreed on a contract that would give pilots a pay raise and an equity stake if the carrier were to merge with Northwest Airlines (NWA.N), according to a Bloomberg report late on Thursday.
Northwest and Delta would not confirm the report that Delta had negotiated a separate deal with its 7,000 pilots. Northwest's 5,000 pilots would be asked to join under a single contract later.
The apparent deal is another sign that Delta and Northwest could move forward with their plans to create the world's largest airline as early as next week.
The deal does not resolve the sticking point that prevented Delta and Northwest from proposing a merger in the first place last month -- how pilots from both airlines would resolve seniority issues and work together under one company.
In fact, the two pilot groups had agreed during their negotiations on seniority to back a proposal for higher pay and a stake in the combined carrier.
Sorting out seniority could take months to complete or even wait until after a merger is finalized.
Both pilot groups, represented by the Air Line Pilots Association (ALPA), have said they would not support consolidation unless terms of a deal were favorable to them.
Bloomberg, citing people familiar with the talks, said the combined company would retain the Delta name, its Atlanta headquarters, and be run by Delta Chief Executive Richard Anderson. Those three elements were part of the original plan as well.
The merger would include a small premium for Northwest investors, Bloomberg reported.
On the New York Stock Exchange, Delta closed up 9.4 percent at $9.75, while Northwest climbed 12.6 percent to $10.87.
(Reporting by John Crawley, editing by Richard Chang)
Its almost official....
