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Northwest's Merger Offers Won't Fly: Delta

So far, proposals skirting key Delta concerns

By Matt Cantor,  Newser Staff

Posted Feb 27, 2008 3:13 AM CST
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(Newser) – An airline merger isn't going to take off until Northwest comes up with a proposal that addresses Delta's concerns, according to Delta executives. So far, offers haven't jelled with Delta priorities, including maintaining employee seniority rankings, according to a Delta memo obtained by the Wall Street Journal. Delta plans to continue with its "stand-alone" plan until it sees a “potential transaction that meets all our principles,” the company’s CEO and CFO wrote.

In addition to protecting seniority and pensions, the airline insists on keeping its name and its Atlanta headquarters, reports Bloomberg. The merger that would create the world’s biggest airline has been hindered by pilots’ inability to agree on a combined seniority list that would protect benefits in a merged company.

A Delta Shuttle Airlines plane, foreground, taxies in front of a Northwest Airlines plane, rear, at Washington's Ronald Reagan Washington National Airport, Wednesday, Feb. 20, 2008. Delta chiefs today said that so far, no deal for a merger with Northwest Airlines had been satisfactory. (AP Photo/Haraz N. Ghanbari)
A Delta Shuttle Airlines plane, foreground, taxies in front of a Northwest Airlines plane, rear, at Washington's Ronald Reagan Washington National Airport, Wednesday, Feb. 20, 2008. Delta chiefs today...   (Associated Press)
A Delta Connection flight takes off as a Northwest Airlines plane taxis Tuesday, Feb. 19, 2008 at the Minneapolis-St. Paul International Airport in Minneapolis. Delta bosses said today that no deal put forth thus far had been satisfactory for a merger between the two airlines. (AP Photo/Jim Mone)
A Delta Connection flight takes off as a Northwest Airlines plane taxis Tuesday, Feb. 19, 2008 at the Minneapolis-St. Paul International Airport in Minneapolis. Delta bosses said today that no deal put...   (Associated Press)
Delta Airlines Chief Executive Officer Richard Anderson testifies on Capitol Hill in Washington, Thursday, Nov. 15, 2007, before the House Transportation and Infrastructure subcommittee hearing on airport holiday travel preparations. Anderson and Delta's president and CFO Ed Bastian wrote in a memo to employees today that Northwest Airlines had not...
Delta Airlines Chief Executive Officer Richard Anderson testifies on Capitol Hill in Washington, Thursday, Nov. 15, 2007, before the House Transportation and Infrastructure subcommittee hearing on airport...   (Associated Press)
Ed Bastian, CFO of Delta Air Lines, speaks to the media after exiting bankruptcy court in New York, Wednesday, April 25, 2007. Bastian and Delta CEO Richard Anderson wrote in a memo to employees today that Northwest Airlines had not presented a satisfactory offer for a merger between the two...
Ed Bastian, CFO of Delta Air Lines, speaks to the media after exiting bankruptcy court in New York, Wednesday, April 25, 2007. Bastian and Delta CEO Richard Anderson wrote in a memo to employees today...   (Associated Press)
The Minneapolis skyline rises in the background as a Northwest Airlines plane lands Thursday, Feb. 21, 2008 at the Minneapolis-St. Paul International Airport. Northwest has not yet satisfied Delta's priorities in a proposed merger. (AP Photo/Jim Mone)
The Minneapolis skyline rises in the background as a Northwest Airlines plane lands Thursday, Feb. 21, 2008 at the Minneapolis-St. Paul International Airport. Northwest has not yet satisfied Delta's...   (Associated Press)
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