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September 5, 2008 11:58:43 PM CDT

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Delta, Northwest Close to Merger After Revived Talks

Posted Apr 13, 08 3:40 PM CDT in Business 

(Newser) – Delta and Northwest Airlines are readying a merger that could be announced as soon as Tuesday, reports the Wall Street Journal. But disputes over the deal’s financial terms and handling of pilot seniority threaten to scuttle the union. Negotiations between the two carriers broke down last week but were revived this weekend with the hope of reaching an agreement by tomorrow.

Neither side needs the approval of its combined 11,000 pilots to pursue a merger. But sources weren’t sure talks could proceed without their blessing, and acrimony with the labor groups could stall the already much-delayed deal, especially as it faces a Justice Department anti-trust review. The new company would be the airline industry's largest by traffic.

Source Wall Street Journal

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Delta Airlines hopes to resolve a seniority dispute with its pilots before settling on terms of a merger.   (AP Photo/Ted S. Warren, file)
Delta and Northwest Airlines have restarted merger talks.   (AP Photo/Ric Feld, file)
Doug Steeland, CEO of Northwest Airlines, could unveil a merger with Delta Airlines by Tuesday.   (AP Photo/Paul Sancya, file)
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airline industry  • Northwest Airlines  • Delta Air Lines  • mergers  • pilots contract


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