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The Company provides air transportation for passengers and cargo throughout the U.S. and around the world. View More
Last Trade:Change:
Summary:
The Company is engaged in the business of transporting passengers and cargo and focuses on the operation of a global airline … View More
Is a 
Northwest-Delta Air Lines merger finally going to happen?
A deal between the two airlines could be announced as early as Tuesday, according to several reports citing anonymous sources close to the talks. Rising oil prices have added a sense of urgency to the merger negotiations, which have been ongoing for many months now. The rising fuel costs have forced four small airlines into bankruptcy in recent weeks.
The Wall Street Journal reports that the deal would value Northwest at around $3 billion, which is slightly more than its market capitalization as of Friday afternoon, but significantly lower than it was when talks began. Shares of both airlines rose more than 5 percent in morning trading on the news of an imminent deal.
The hurdle both airlines still need to overcome is reaching satisfactory terms for their pilots. Representatives for Delta's 6,000 pilots met this weekend in Atlanta, while union leaders of Northwest's 5,000 pilots called a meeting in Minneapolis.
The main sticking point for both pilot groups appears to be seniority lists. The lists are important to pilots because they determine scheduling and routing priorities in addition to ranking for pay.
The pilot groups can't formally block a merger, but they can complicate the process. U.S. Airways and America West Airlines have been trying to combine operations for two years, but have been unable to resolve issues related to pilot seniority, the New York Times notes.
Northwest-Delta Air Lines merger finally going to happen?A deal between the two airlines could be announced as early as Tuesday, according to several reports citing anonymous sources close to the talks. Rising oil prices have added a sense of urgency to the merger negotiations, which have been ongoing for many months now. The rising fuel costs have forced four small airlines into bankruptcy in recent weeks.
The Wall Street Journal reports that the deal would value Northwest at around $3 billion, which is slightly more than its market capitalization as of Friday afternoon, but significantly lower than it was when talks began. Shares of both airlines rose more than 5 percent in morning trading on the news of an imminent deal.
| Also on Portfolio.com: Travel in the Time of Merger Changes in the Air |
The main sticking point for both pilot groups appears to be seniority lists. The lists are important to pilots because they determine scheduling and routing priorities in addition to ranking for pay.
The pilot groups can't formally block a merger, but they can complicate the process. U.S. Airways and America West Airlines have been trying to combine operations for two years, but have been unable to resolve issues related to pilot seniority, the New York Times notes.
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