Delta, Northwest seeking support for merger

Tue Apr 15, 2008 11:13pm EDT
 
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By Mark McSherry

NEW YORK (Reuters) - Executives of Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) hope to win over Northwest Airlines Corp (NWA.N: Quote, Profile, Research, Stock Buzz) pilots, who oppose Delta's bid to buy Northwest for more than $3 billion to create the world's biggest airline by traffic.

While Delta pilots would get a 3.5 percent equity stake in the new airline, and support the all-stock deal, the leaders of Northwest's pilots said Monday night the union will use "all resources available to aggressively oppose" it after the two unions could not agree on how to work under one seniority umbrella.

Seniority determines when pilots work, what they fly and how much they get paid. Some analysts said the opposition of the Northwest pilots could pose a serious threat to the deal.

The proposed deal comes as major U.S. carriers try to counter skyrocketing fuel prices and a weak domestic economy.

Delta Chief Executive Richard Anderson said on Tuesday the carrier aims to fully integrate its two pilots' groups as soon as possible.

At a press conference in New York, Delta executive vice president Mike Campbell said the airlines had eight or nine months to get the Northwest pilots on board.

"If we succeed in that, it will be revolutionary, and it will be a game changer," said Campbell.

In an interview on NBC television, Anderson said that before the deal closes, he wants to have an agreement with pilots from both airlines.  Continued...

 
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