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.

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(AP)

Delta-Northwest merger gets DOJ nod

The US Department of Justice has cleared the way for Atlanta's Delta Airlines and Minneapolis-based Northwest Airlines to merge. The Department's anti-trust division spent the last six months trying to determine if the merger would give the new airline an unfair advantage in the industry. The new airline will keep the Delta name and its Atlanta headquarters. In a statement, the division said the merger is likely to produce "substantial and credible efficiencies" that will benefit consumers nationwide and is "not likely to substantially lessen competition."

Delta shareholders okay NWA merger

Delta Air Lines shareholders give the go-ahead to the company's purchase of Northwest Airlines by approving the issuance of new stock as part of the transaction.

Thursday's vote came at a meeting near Atlanta. Earlier in the day, Northwest shareholders approved the combination during a meeting in New York.

The deal still requires Justice Department approval.

Meanwhile, A top official of the machinists' union said Thursday that customers, employees and shareholders of Northwest and Delta will be hurt if the two airlines complete their deal to create the world's largest carrier.

Robert Roach Jr. says the two airlines have different corporate cultures and mismatched aircraft fleets.

Shareholders of both airlines voted Thursday to approve the combination.

Roach says combining the two work forces would require solving issues including workers' union representation, job security, pensions and seniority at the combined company.

He says mergers won't help troubled airlines -- most U.S. carriers lost money in the first half of this year as they battled high fuel costs -- and he called for more government regulation of the industry.

(The Associated Press)

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Delta reports $1-B 2nd qtr loss

Delta Air Lines has reported a loss of one-billion dollars in the 2nd quarter of this year. But the carrier expects to make back more than that amount once the proposed Northwest merger goes through.

Delta actually recorded a profit of 137-million dollars for the three months ending June 30th. But including special charges to its balance sheet, the profit swung sharply to a loss of one-billion dollars.

Delta president Ed Bastian in a company webcast today said a bulk of the expenses came in the form of a reduction of its workforce with severance and early retirement packages to four-thousand employees. That totaled to a cost of 96-million dollars.

Atlanta-based Delta is in the process of its acquisition of Northwest airlines. The airline expects additional revenue or cost savings from the combination will generate two-billion dollars in the next 4 years.

The proposed merger is currently under review by regulators, and is expected to close by the end of the year.

Delta announces takeover timeline

Delta Air Lines announced plans today for the composition of its senior leadership team after it acquires Northwest Airlines later this year. The Atlanta-based carrier said it expects to take 12 to 24 months to transition Northwest into Delta. Delta Chief Executive Richard Anderson will lead the combined airline.

Delta prez: 'Merger still a "go" despite conditions'

The top official of Delta Airlines says despite the ever-changing climate in the airline industry, it’s still full steam ahead for the carrier’s proposed merger with NorthWest.

Delta president and chief financial officer Ed Bastian says he understands why other airlines have hesitation for jumping into merger deals given the economics of the industry today. However, nothing is changing with the Atlanta-based carrier’s plans to combine with Minneapolis-based Northwest.

Bastian made the comments Tuesday at the company’s annual shareholders meeting in New York. He did say that further domestic capacity cuts will be needed for Delta in the future to help deal with spiraling fuel costs. Additional job cuts however, are not planned.

Delta announced in April it would combine with Northwest, and base its headquarters in Atlanta--Delta’ current home. Just last week, United and US Airways broke-off discussions on a possible merger between those two carriers.

Delta flight attendants not unionizing

Delta flight attendants' election to unionize wrapped up today, but not enough of them voted to form a union. Only forty percent of them cast ballots, so the election is void.

But spokesperson from the Association of Flight Attendants Corey Calwell says that this may not be the end of the issue. Her organization represents Northwest's flight attendants.

Calwell says, "We believe voter participation will increase as Delta and Northwest get down the merger path."

After the merger, she says, new elections will be held.

Delta flight attendants wrapping important vote

Month-long voting ends tomorrow for Delta flight attendants for the issue on the table on whether to unionize. It’s a vote being closely watched by the entire airline industry. Union organizers have concern about the possibility of outsourcing flight attendant work to foreign national flight attendants. Atlanta-based Delta is in the process of completing a merger with Northwest Airlines.

Delta pilots consider contract changes

Delta pilots begin voting today on changes to their contract sought by airline management. The changes include higher pay and an equity stake in the company, which is merging with Northwest Airlines. In exchange, the pilots would give airline management more flexibility in finalizing details of the combination. Voting runs through May 14th. The measure needs a majority vote for approval.

Delta pilot union says open to arbitration

In an about turn, the head of Delta's pilots union suggested today that he's open to submitting to arbitration with Northwest pilots to reach a seniority integration agreement.

The two sides were unable to reach a deal before their companies announced the merger this month.

The Northwest pilots union has said repeatedly that it supports arbitration, although that was before Delta's pilots cut a deal with management to give them a voting board seat, future pay raises and an equity stake in the combined airline.

Delta Air Line's stock-swap deal to acquire Northwest Airlines, if approved, would create the world's biggest carrier.

Delta officials face hometown crowd

Delta officials faced the home town crowd in Atlanta today, one day after it was announced that Delta would merge with Minneapolis-based Northwest Airlines. Like any high profile marriage, a lot of people will be watching the union of Delta and Northwest. Including passengers concerned about quality and service. And, employees worried about their jobs. Although Delta officials have already said no to any immediate personnel cuts.

But, the toughest challenge the new company faces will be from the Federal Trade Commission. However, Delta CEO Richard Anderson remains confident of the outcome. "There's far more contestability with Southwest, AirTran. And, there's free entry into these markets. From contestability and a competition standpoint, these transactions should be approved by the regulators." Delta officials say they hope to have the deal wrapped up before the end of the year. Before the pro-business White House changes hands.

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Obstacles to Delta merger

A day after Atlanta-based Delta Air Lines announced merger plans with Northwest Air Lines, obstacles stand in the way. Two of Minneapolis-based Northwest's largest unions immediately declared their opposition to a combination. Most importantly, the airlines would need anti-trust approval from federal regulators. Still, executives at Delta and Northwest say they are aiming to close their deal by the end of this year.

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Delta, Northwest announce merger

Atlanta-based Delta Air Lines announced Monday that it will acquire Minneapolis-based Northwest Airlines in a deal that will create the world's largest airline. The combined company will retain the Delta name and be headquartered in Atlanta.

In a statement on its website, Delta says the airline will maintain its nine existing hubs in the United States, Europe and Asia. The deal is expected to result in a number of administrative job losses, but few are expected among frontline employees such as flight attendants, pilots or mechanics. 

Consumers could see higher fares with reduced competition on some routes. However, relatively little overlap exists between the current Northwest and Delta route systems. 

Frequent fliers can expect to retain their earned mileage points since both airlines' reward programs are already integrated through the SkyTeam network. 

Delta CEO Richard Anderson cited record oil prices, a weakening economy and increasingly competitive marketplace as reasons for the move. He expects the new airline will achieve greater financial stability and job security for its employees.

Anderson will remain CEO of the new, combined airline. Northwest CEO Doug Steenland will take a position on the airline's board of directors. 

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Delta and Northwest: Closer to a deal?

Delta and Northwest could announce a merger deal tomorrow. However, much like before, pilot contracts issues may stall an agreement according to sources close to the talks.

The two airlines could meet today to give a final stamp of approval for the deal. The airlines may move towards a merger without the respective pilot unions reconciling their disputes over seniority.

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 pilots could picket

Delta Air Lines pilots have been granted permits to picket at Northwest Airlines hub airports. The move comes a amid a dispute over seniority between the two airlines' unions that so far has held up a combination of the carriers. A person familiar with the situation says the permits grant Delta's pilots permission to picket at the Minneapolis and Detroit airports, which are considered Northwest crew bases, from Thursday to April 24th.

Permission granted: Delta pilots can picket NWA hubs

Delta Air Lines pilots have received permits to picket at Northwest Airlines hub airports in Minneapolis and Detroit. The move comes as the impasse over a proposed merger of the two airlines’ pilot seniority lists continues. The dispute has stalled a proposed combination of the carriers.

The permits allow Delta’s pilots to picket for two weeks, starting April 10. In the past, Delta’s pilots have received such permits but not engaged in picketing. Northwest’s pilots union says it will consider picketing Delta’s hub airports.

According to the Associated Press, executives with Delta and Northwest are trying to determine whether to proceed with a merger, in spite of the ongoing dispute between the two airlines’ pilots groups.

Delta feels pressure to merge under Bush Administration

In Georgia business news … further delays in merger talks between Atlanta-based Delta Air Lines and Northwest Airlines could jeopardize the carriers' chances of getting regulatory clearance from the business-friendly Bush administration. Experts say any combination will take several months to gain Justice Department approval. If that decision comes after Election Day, the airlines will have to get approval from George W. Bush's successor in the White House.

Delta pilots pass on arbitration

Delta Air Lines’ pilots rejected Wednesday the possibility of entering into binding arbitration with Northwest Airlines’ pilots over issues related to a potential merger of the two carriers. The two airlines’ pilots groups had reached an impasse in talks over integration of seniority lists for a combined company. In a memo, Delta pilot union leader Lee Moak suggests arbitration would not be beneficial for his pilots and that talks between the two sides are over. Atlanta-based Delta had been in talks with Minneapolis-based Northwest about a possible merger, but that prospect waned in recent weeks because of unresolved issues between the airlines’ pilots.