Merger in the air

Report: Delta-NWA reach agreement with pilots unions

by Jessica Mador, Minnesota Public Radio

There are reports that a major obstacle to a merger between Northwest and Delta Airlines has been cleared.

St. Paul, Minn. — The Atlanta Journal-Constitution reported Saturday that talks between the pilot unions at Delta and Northwest Airlines ended with an agreement on how to integrate their membership and seniority lists if a merger between the two airlines goes through as expected.

The issue of how to blend ranks was a main sticking point holding up the merger talks, which have been ongoing for weeks.

If approved, the merger would create the world's largest airline, with 79,000 employees and hubs in Atlanta, Detroit and Minneapolis along with substantial international routes.

Under the deal, the two carriers' pilot unions would get a voting seat on the new board of directors, along with a share in equity totaling roughly 7 percent, to be divided among management and employees.

The merged airline would be called Delta. Its headquarters would remain in Atlanta, while Northwest's current Minneapolis headquarters would become a secondary operational center.

Representatives from both pilots unions declined to comment, as did airline officials.

The merger is still being negotiated. An announcement is expected to come as early as next week.