NWA-Delta merger deal ready for airlines to sign [View All]

[Omaha Steve]

http://www.startribune.com/15859527.html


But the announcement is on hold because pilots haven't agreed how to blend their seniority lists.

By LIZ FEDOR, Star Tribune

Last update: February 22, 2008 - 7:22 AM

The proposed combination of Northwest Airlines and Delta Air Lines, structured as a stock swap and including a $750 million investment from Air France-KLM Royal Dutch Airlines, is set to be unveiled as soon as the pilots from both carriers resolve issues surrounding seniority.

"The merger agreement is in fact ready to sign. It is done," a source familiar with the negotiations told the Star Tribune Thursday.

Having reviewed the details of the deal Wednesday, Northwest's board is expected to meet again to act on resolutions authorizing management to implement the merger, the source said. "That won't happen until there is a pilot agreement, if there is," the person said.

The carriers' pilot groups are struggling to figure out a way to blend their workforces in a fair manner. Northwest and Delta pilots are represented by the Air Line Pilots Association (ALPA).

Northwest ALPA's executive council met Thursday to discuss the merger, the proposed labor contract and the union's strategy to resolve the seniority conflict. Pilot leaders are expected to continue that meeting today.

"Reaching agreement on economic issues prior to a formal merger would give Wall Street confidence in the new consolidated entity, which means improved value -- and thus improved equity -- for our pilots," Dave Stevens, chairman of the Northwest pilots union, said in a recent memo to his members. "Cooperation adds to the synergies of the new company, which allows it to pay higher wages, another benefit for our members."

FULL story at link.