Columbus Bank To Merge With Neighbors

The president of Columbus Bank and Trust Company says it’s "strength in numbers" for his institution’s decision to merge with three other banks in the region. The Columbus Ledger-Enquirer reports this morning the Columbus bank will merge with banks in LaGrange, Warner Robins, and Phenix City. All four institutions are affiliates of the Columbus-based bankholding firm Synovus Financial Corporation.

An approval from regulators is expected by early June. The new merged operation would operate under the name CB&T, with $7.5 billion in assets serving 10 markets.

Delta-Northwest pilots voting on new deal

Pilots for Delta and Northwest Airlines are being urged by union leaders to vote ‘yes’ on a joint collective bargaining agreement. Voting on the issue ends this afternoon.

Approval is seen as key to the efforts of Atlanta-based Delta to help smooth the way toward a combination of the two airlines. Delta is expected to complete its acquisition of Minnesota-based Northwest by the end of the year, creating the world’s largest carrier.

The proposed joint contract agreement calls for compounded raises of more than 18-percent over 4 years for pilots. In addition, Northwest pilots ‘pre-merger’ would get a 2.4 percent equity stake in the new combined airline. Current Delta pilots would receive 3.5 percent of equity.

The joint contract agreement would cover about 12,000 pilots. Still not worked-out however, is how to integrate seniority lists of the pilots.

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 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 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.

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.

Click here for more GPB news coverage of the Delta-Northwest merger.

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. 

Click here for more GPB news coverage of the Delta-Northwest merger.

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.

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.

Perdue: I trust Delta leaders on merger

A merger deal between Atlanta-based Delta Air Lines and Northwest is still being held-up by a snag between the pilots’ unions of the two carriers.

A spokesman for the Northwest pilots says at issue is protecting seniority for its members in a combined larger company.

Governor Sonny Perdue was asked today for his reaction to the latest in the proposed 20-billion dollar merger:

"I don’t think it’s seemly for me to check-in everyday and say ‘how’s it going?’. I have confidence that our leaders at Delta will make a great decision for their customers, their shareholders, and the public at large”.

Perdue reiterated his hope that a new company keep the Delta name, and its headquarters based in Georgia.

Delta moves closer to merger with Northwest

The business world awaits the possible announcement this week of a merger between Atlanta-based Delta and Northwest airlines. Delta’s board is expected to meet Wednesday to consider the merger deal--it would create the world’s largest airline with nearly 80-thousand employees for its main operations.

Delta CEO to pass on extra pay

Delta Airlines’ chief executive, Richard Anderson, will voluntarily forgo bonus pay that he would accrue if his company merges with another. The move came in a regulatory filing by Anderson. Delta’s board of directors also approved the offer. The airline has been weighing merger options in recent weeks, although the company has not commented on specifics of a potential deal. It is unclear how much money Anderson would potentially be giving up.

Delta, Northwest combo reported closer

Ever closer is a combination between Atlanta-based Delta and Northwest Airlines. Sources say a deal to create the nation's largest carrier could be announced as early as next week. A point of discussion right now is what role the chief executive of Northwest would have in the new company. Still unclear are issues such as the name for a new company, where the headquarters would be, and other various labor issues.

Delta board could get merger talks request

Delta Air Lines' Board of Directors will be asked today to allow formal merger talks to move ahead with airlines Northwest and United. Sources say the expectation would be that Delta would eventually choose to combine with one of the two carriers.

Atlanta-based Delta has previously said its board is evaluating whether to enter into a merger deal. On this latest news, Delta shares jumped more than 18-percent on Thursday.

Delta pilots brace for potential merger

Leaders of Delta Air Lines’ pilots union say the potential for a merger between Delta and another U.S. carrier is high. Lee Moak, Chairman of the Air Line Pilots Association, says soaring fuel prices, a weak Delta stock price and “rhetoric” by business groups over the past few months are undeniable indicators that a merger may be imminent. The union plans to prepare for a consolidation when it meets in Atlanta this week. Delta has declined to comment on the union’s speculation. Last fall, Delta executives formed a committee to consider strategic options, including a possible merger.

Delta: not talking merger with United

Delta Air Lines' CEO Richard Anderson told a congressional committee Thursday that he hasn’t spoken to officials with United Air Lines in at least four years. That answer came as a response to questions on whether the two airlines were talking merger. Anderson said no merger discussions are ongoing between Atlanta-based Delta and Chicago-based United, and none are planned. Anderson was in Washington to speak at the House subcommittee on aviation. A government proposal wants to cut the number of flights at New York’s JFK airport. Delta’s Anderson says that would threaten the airline’s ongoing bankruptcy recovery.