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Thursday, February 21, 2008

Delta-Northwest deal grounded, for now

An expected merger announcement by Atlanta-based Delta Airlines and Minneapolis-based Northwest Airlines has been postponed. The boards of both airlines have put off a vote on the combination while they continue negotiations with the airlines’ pilots unions. At issue is the integration of both airlines’ pilot seniority lists, which determine pay and scheduling. While a labor agreement is not necessary for a merger to occur, both sides see a deal as important to ensuring a smooth transition to one airline in the future.

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