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MONTHLY ARCHIVES
Delta-Northwest Merger Taking a Nosedive?
February 26, 2008 6:10 PM
ABC News' Lisa Stark and Matt Hosford Report: Tonight the Delta-Northwest mega merger deal is on the ropes. The two airlines have been talking for weeks, trying to see if they could combine to become the nation's largest carrier.
Tonight in an internal memo obtained by ABC News, Delta CEO Richard Anderson tells the rank and file, "To date we have not arrived at a potential transaction that meets all of our principles."
Anderson added, "Rest assured that we will not complete a transaction unless all of these conditions are met."
One key sticking point remains the pilots.
Delta and Northwest pilots have been trying to come to an agreement on seniority -- in other words, an understanding on how the two groups would merge their seniority lists fairly. So far, pilots haven't been able to come to terms.
There had been some speculation that Delta management might continue with the merger, even without the pilot agreement. Tonight sources tell ABC News that won't happen.
No word on how much longer the two sides will continue to try to hammer out an agreement. But one source tells ABC News that time is running out.
A Delta spokesperson would not comment on the status of the negotiations, in fact, in keeping with Delta's practice on this topic, she wouldn't even confirm that talks are ongoing.
February 26, 2008 | Permalink | User Comments (17)
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I have been flying NorthWest and like them. I have flew Delta and was not impressed. I think all US airlines need to take a classes from the FOREIGN airlines. With them the customer comes 1st. Like in the past. The US airlines always forget about US the customer. With out us they would all be out of Business.
Bottom line you can still have great Customer Service and still make money. I dosen't cost anything for a smile and a little bit of kindness on the part of the airlines staff. The airlines forget this.
The merger need to look at as a whole how we can help and make the customer # 1 again, which will make the airline better also.
Posted by: Thomas Doll | Mar 26, 2008 4:00:38 PM
I've flown on several airlines. Then NWA, never again. Airport agents are the worst. Planes are the oldest, trash containers may be cleaner. Delta was one of the best. Why associate with NWA, it's depressing.
Posted by: Jim Smith | Mar 18, 2008 6:26:23 PM
Northworst will eventually do to ALL their employees, what they did to their mechanics ! careful boys !
Posted by: Bclass | Mar 16, 2008 7:58:03 PM
I have flown with Delta Airlines for many years. I consistently maintain platinum medallion status and am a million miler. I sincerely hope Delta and Northwest do not merge. I have had the displeasure to fly NWA several times and have found their employees to be rude and uncaring and their equipment filthy. I was consider riding Amtrak before flying with NWA again. Delta! Just stay Delta.
Posted by: Allen Cowling | Mar 4, 2008 2:32:34 AM
anonymous-those overpaid pilots average alot more education and experience+ training than you do throwing bags, but they didn't get any of what you say- just lost their retirement, and they don't have the ability to go to Penneys and make what they've invested in education and training back. And Northwest pilots don't make more than Delta's ( for whomever stated that fact) for those of you crying about ticketcosts,check out pre 1975 seat mile costs vs now
Posted by: jp | Mar 3, 2008 12:51:22 AM
This has been posted before.... but additional thought on this by you guys requested. Doug Steenland, the CEO of NWA, sent a memo out to his employees on Feb 26, the same day Delta stated that they had not come to a deal that would satisfy all of Delta's "requirements".
From the CEO of NWA: "We continue to believe that consolidation among the network carriers is inevitable. Given that, our Board of Directors and management team are prepared to consider positively a transaction that would provide greater long-term security and growth opportunities for our employees; create value for our shareholders; and benefit our customers and the communities we serve. Through such a transaction, our goal would be to create the strongest possible foundation for the airline. We continue to consider strategic alternatives based on these criteria."
Is he saying they are considering a deal (The NW/DL deal), or is he referring to the fact that the NW/DL deal did not pan out, and the NWA BOD will continue to pursue a deal that will work? Or is he talking about a deal that they may have going on the side that noone knows about? His statement can be taken so many ways.
I would like to think that they are still giving the pilots time to come up with something (not on a deadline) and eventually something will come out of it. On the other hand, maybe this thread is right and ALL of this is over. If that's the case, I'd expect some liquidations and more bankruptcies in the next few years. Maybe in the end, the end of existance of a few airlines who don't merge is going to be the outcome. I totally understand seniority cannot be bought. But come on guys, in ten years if we can't compete globally and we are out of a job, what good did our seniorities do for us?
Posted by: Rockey | Feb 29, 2008 2:27:50 PM
no for this merger...it should be Delta and USAirways
Posted by: gebril | Feb 27, 2008 5:39:13 AM
Delta pilots may HAVE BEEN the highest paid in the industry, but, presently, they rank 8th, behind UPS, FedEx, Airborne Express, American, Continental and Northwest, in that order. Times have changed.
Posted by: pilot | Feb 27, 2008 1:04:03 AM
You want the cheapest ticket money can buy? You want the world wide lowest bidder to fly you and your family? Have you studied many of the recent crashes from foreign airlines around the world? Be careful what you wish for. You just might get it. Ask the family members from Comair 5191 if they want the cheapest tickets money can buy. There has already been a dramatic shift in the quality of person willing to fly as a commercial pilot. Look for an increasing accident rate in the near future, and good luck to you. You just might need it.
Posted by: Mike | Feb 27, 2008 12:25:26 AM
More of an oligopoly is bad for business. Plus, this merger will destroy Cincinnati and the surrounding suburbs in both Ohio Kentuckey, Minneapolis, and will rock all the smaller market cities that are serviced by Northwest, Pinnacle, Mesaba, and Comair.
Posted by: Me | Feb 26, 2008 11:01:34 PM
Soooooo.....foreign owned airlines are safe.......huh? Youz buy your ticket....youz take your chances....
Good luck.......
Posted by: Bill | Feb 26, 2008 9:14:30 PM
Perhaps we should have open skies policy, allowing foreign airlines to do business in the United States. Then the American consumer will benefit the way Walmart imports Chinese goods and raises American standard of living. Why should American factories be exposed to foreign competition but oligopolistic American airlines are protected? If we allow foreign airlines to operate in American skies, then we will see lower fares and keener competition. Competition is good for the economy, right?
Posted by: Rajska | Feb 26, 2008 8:21:32 PM
hold your ground Art
Posted by: pvmnd@aol.com | Feb 26, 2008 8:05:19 PM
gotta love those unions...take a clue from international airlines so we can make a profit
Posted by: steve | Feb 26, 2008 7:49:59 PM
The way the airlines are going, it probably would be better to fly on a UPS or a FedEx cargo flight.........
Posted by: mike | Feb 26, 2008 6:51:48 PM
Go Jetblue..
Posted by: annonymous | Feb 26, 2008 6:42:05 PM
Delta pilots have always been the highest paid in the industry. Even back when the company was in bankruptcy, they were still the highest paid. Now they want $100k each to merge their senority lists. That is on top of the $300k they each get for coming out of bankruptcy. The rest of the workers have taken 25% pay and benefit cuts so these poor babies can have more, more, more. Must be nice to be able to buy a very nice home and his and hers luxury cars for doing absolutely nothing. The essence of the "Me" generation. They disgust me. If Anderson had a set he would fire all of them and hire pilots who need work and want to see the company do good.
Posted by: rewired1 | Feb 26, 2008 6:41:42 PM
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