Delta, Northwest pilot talks move forward slowly-sources

Tue Feb 12, 2008 11:31pm GMT
 
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By John Crawley

WASHINGTON, Feb 12 (Reuters) - Talks between pilots at Northwest Airlines Corp (NWA.N: Quote, Profile, Research) and Delta Air Lines Inc(DAL.N: Quote, Profile, Research) to reach an equity and seniority agreement they can offer to management ahead of any merger bid are moving forward but slowly, industry sources with knowledge of the discussions said on Tuesday.

There is no indication that units of the the Air Line Pilots Association (ALPA), who have been meeting in New York, will not come to an agreement but the effort is complex.

"I think it will get worked out but take more time. They don't like to be rushed," said one industry consultant who has been informed about the pace of discussions.

"Each side is trying to figure out their own positions and come to a side deal. But these are major issues. It's hard to come to some quick conclusion," said an aviation attorney who consults for carriers and is knowledgeable about labor issues.

There had been reports that a Delta/Northwest merger bid could be announced as early as this week, but people briefed on the situation told Reuters on Monday that it could take a few weeks to bring a proposal to shareholders and the Justice Department. The structure of the deal remains unclear.

Pilots are considered a key to any successful merger and unions at both airlines, representing a combined 11,000 pilots, have said they would not be rushed. They both have said there would be no consolidation without their input.

Delta's pilot leadership had no comment on merger issues. Officials at ALPA's Northwest headquarters could not immediately be reached for comment. Officials at Delta and Northwest also had no immediate comment on labor-related merger questions.   Continued...

 
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