FAA approves Delta plan

Delta airlines is a major step closer toward merging with Northwest Airlines. The Federal Aviation Administration has approved a transition plan to allow Delta and Northwest to achieve a single operating certificate. The plan outlines the methodology, processes, tools and timing to maintain the safety of the day-to-day operations. Shareholders at Atlanta-based Delta and Eagan, Minn.-based Northwest are scheduled to vote on the combination on Thursday.

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 Airlines raises fares

Delta Airlines raised its fares yesterday around 10 to 40 dollars round-trip.

High fuel prices is the reason. Other airlines including Northwest and US Airways say they are studying the fare increase.

The high fuel prices are spurred by oil, which currently stands at 120 dollars a barrel.

Airlines have been raising fares in recent months to cope. Some rates have stuck, others have not.

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.

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