Transportation Industry

Company Watch - Northwest Airlines

AirGuide Business, March 10, 2008

Mar 10, 2008

Delta Air Lines and Northwest Airlines pilots have resumed negotiations over how to merge contracts and seniority during a potential merger, according to media reports. It is unclear if pilot leaders have made any progress during the informal meetings. Previous talks ended about two weeks ago. Mar 6, 2008

Delta Air Lines has a strong stand-alone plan and is not rushing to merge with Northwest Airlines, Delta Chief Financial Officer Ed Bastian said. "We don't feel pushed or hurried into any decision," Bastian said. "If we find the right deal, we'll pursue it." Pilot seniority issues have stalled merger talks between Delta and Northwest, and some industry analysts have said consolidation is on hold for now. Meanwhile, the airline has disbanded a group of outside advisers hired to guide a merger, according to media reports. Reuters (2/29) , Bloomberg (3/1) Mar 3, 2008

Northwest Airlines flew 5.92 billion consolidated RPMs in February, up 5% on the year-ago month. Capacity climbed 4.5% to 7.38 billion ASMs, lifting load factor 0.3 point to 80.2%. Mar 7, 2008

Northwest Airlines and Delta Air Lines pilot groups resumed meetings on a proposed merger after a break of nearly two weeks, The Detroit News reported. The airlines last month briefed their pilot groups on details of a potential merger, but leaders of the two carriers' pilots, all of whom are represented by the Air Line Pilots Assn., reached an impasse over combining seniority lists. NWA and DL appear reluctant to move forward with a merger agreement absent the support of pilots. Mar 7, 2008

Pension insurer asks to participate in merger negotiations. The Pension Benefit Guaranty Corp. has requested that Northwest Airlines and Delta Air Lines include it in merger negotiations. PBGC officials said a merger could leave the carriers without sufficient assets to cover their pension plans. A Delta spokesman said the company will maintain its pension plans if it merges with another carrier. Mar 7, 2008

The Pension Benefit Guaranty Corp. has requested that Northwest Airlines and Delta Air Lines include it in merger negotiations. PBGC officials said a merger could leave the carriers without sufficient assets to cover their pension plans. A Delta spokesman said the company will maintain its pension plans if it merges with another carrier. Mar 7, 2008

Editorial eMail: edit@AirGuideOnline.com

For Air Transport & Travel Business Experts contact our Director of Content Aram Gesar eMail: bizintel@AirGuideOnline.com

To Advertise: advert@AirGuideOnline.com