Delta and Northwest Pilots have seniority agreement

Pilots affected by the Delta and Northwest airlines merger will integrate based on more than just seniority,

As Delta and Northwest become the largest airline in the world, their pilots had to rely on an arbitration panel to figure out how to rank their seniority.

The panel ruled that aircraft category will play a role in determining a pilots standing. Seniority is important to the 12 thousand pilots, because it determines best routes, pay and vacations.

Northwest pilots had argued to use only hiring date to determine seniority, as it’s pilots are older. Atlanta based Delta argued for the inclusion of an aircraft category.

The new merged airline can’t fly under one name until the Federal Aviation Administration issues that permit. A move expected late next year.

In the meantime labor issues with ground crews and flight attendants still have to be resolved to complete the merger.

Delta awarding CEO $13.6M for closing NWA deal

Delta and Northwest planes. (Jim Mone/AP)

Delta Air Lines CEO Richard Anderson will get stock awards worth almost $13.6 million beginning next year for closing the carrier's buyout of Northwest Airlines.

Employees of Delta Air Lines, including their new coworkers from Northwest, are also getting stock.

Atlanta-based Delta had said previously it would hand out about 15 percent of its shares to various employees, including almost 10 percent to the rank-and-file. Another 3.5 percent is going to about 700 officers, directors, and managers.

Anderson will get 760,000 restricted shares, worth almost $8.6 million based on Delta's share price at midday Monday. He also gets options on 1.52 million shares at an exercise price of $7.99 per share, which was Delta's closing share price on Wednesday, just before the Northwest deal closed.

With Delta shares trading at $11.28 at midday Monday, those options could give him a profit of $5 million if they could be exercised right away. However, Anderson has to stay with Delta to get the shares and options, with the first 20 percent vesting on May 1, 2009, and the last 40 percent vesting on Nov. 1, 2011.

Click here for more GPB coverage of the merger.

(AP)

Delta launches paperless boarding pass

Your paper boarding pass may soon be a thing of the past if you’re flying Delta Airlines. Delta’s trying out an electric boarding pass option in La Guardia Airport in New York today. Plans to do the same in Atlanta are scheduled for later this year.

Passengers will be able to use cell phones to download bar codes to be scanned at the security checkpoint and boarding gate.

The main reason Delta’s going paperless is to attract hurried business travelers who can save time using the electronic system.

Delta says 'no' to first-bag fee

Delta Airlines will still allow passengers to check one bag without facing additional fees. That’s in spite of American Airlines’ announcement Wednesday that it will charge customers $15 for their first checked bag. Record fuel prices are forcing Delta and other airlines to consider adding fees and cutting operating costs.

Delta Northwest fly as merged airline across Atlantic

Northwest and Delta airlines have won anti-trust immunity to coordinate flight schedules across the Atlantic. The federal government granted preliminary approval for the domestic airlines to team up with Air-France-KLM and two other foreign carriers in the so-called SkyTeam Alliance so they can operate as one airline across the Atlantic.

The SkyTeam carriers remain subject to anti-trust laws for non-trans-Atlantic flights.

A final ruling on the immunity is due April 30^th. In the meantime, Northwest and Delta will reap the benefits of a merger at least for Atlantic flights without actually closing a deal. Merger talks remain tied up with pilots’ seniority issues.

Delta-Northwest merger may face opposition in Minnesota

On the brink of a likely merger between Delta and Minneapolis-based Northwest airlines, Minnesota politicians express their concerns. Northwest has signed agreements to maintain a hub and headquarters in Minnesota, but political leaders worry that because Atlanta-based Delta is the larger airline, those arrangements could go south along with jobs.

Delta’s board is expected to meet Wednesday to consider the merger deal, but once made, it still must clear many hurdles in Washington where lawmakers from all over will have a chance to weigh in. They could modify the deal.

Minnesota Governor Tim Pawlenty said he would not rule out opposing the merger if it’s bad for his state, but he’s willing to negotiate. For instance, the headquarters could go as long as the merged airline kept an equal number of jobs in his state.

Northwest employs 11,500 people in Minnesota, about 1,000 are tied to its headquarters.

The merged airline would create the world’s largest airline, employing nearly 80,000 people.

Delta creditors give thumbs-up for new plan

An April 9th vote by Delta creditors shows more than 95 percent support the company's reorganization plan.

Creditors also voted in the same numbers to approve the reorganization plan of Delta's subsidiary, Comair.

The new plan calls for some of Delta's creditors to receive newly issued common stock.

Delta is the nation's third-largest airline.

The carrier filed for bankruptcy protection in the fall of 2005, citing soaring jet fuel prices and increased competition from low-fare airlines.

Delta says it expects a bankruptcy court to confirm its reorganization plan at a hearing later this month.

Delta plans for life after bankruptcy

With just a little over a month until it emerges from bankruptcy, investors can look forward to a leaner, more profitable Delta Airlines.

In a statement filed with the SEC, the company said it would rid itself of non-performing assets.

Addressing investors, Delta’s Chief Financial Officer Ed Bastian wouldn’t specify the assets to be shed, but said one top priority is to re-fleet its plane stock.

Post-bankruptcy plans for the nation’s third largest carrier, include expanded international service, improved baggage handling, and enhance customer.

Delta is set to emerge from bankruptcy on April 30.

GPB: LATE WINTER STORMS DISRUPT AIR TRAVEL IN NORTHEAST

by Valarie Edwards

A late winter storm in the northeast, means hundreds of cancelled flights from Washington, D.C., to Boston.

Atlanta’s Delta Airlines was forced to cancel 250 of its flights, including those in and out some of the nation’s busiest airports.

Hardest hits are the New York area’s three major airports, including Kennedy, LaGuardia and Newark International in New Jersey.

Delta Airlines spent Thursday contacting thousands of its customers, says Delta spokesperson Gina Laughlin.

“By proactively cancelling flights, that helps us do two things. One, we can start contacting customers early but it also ensures that we don't have airplanes stuck in airports where inclement whether is imminent.”

Other airlines reporting cancellations include American, Northwest and Jet Blue.

Jet Blue came under fire in early February after an ice storm stranded thousands of passengers for hours on planes parked on New York area runways.

The National Weather Service expects rain and snow to continue in the north east throughout much of the weekend.