Archive for the 'Northwest Airlines' Category

Delta and Northwest Announce Merger

After month and month of speculation, with four US airlines going under or declaring bankruptcy in the last two weeks, Delta Airlines and Northwest Airlines have finally announced their merger late last night. When the news broke about a possible merger that Delta Airlines is a part of, it was about talks with United Airlines as we reported on the matter earlier. The final couple sounds a little bit more logical, with both of them being members of the same Airline Alliance (SkyTeam) and also sharing membership in the group of 6 SkyTeam members that were given antitrust immunity just last Friday, that allows for integration of their Trans-Atlantic flights under the US-EU Open Skies agreement.

Delta and Northwest planes in Atlanta, Delta\'s Hub Airport

One of the major issues (so far) has been the so-called seniority list of the ~11.000 Pilots at both airlines as the two Pilots’ Unions could not come to agreement earlier. The seniority lists guarantee special rights to Pilots who reach a certain level of experience flying for the airline and actually determines which planes they can fly (which influences their wages…). But if the two airlines merge their lists, the new, combined list may have more pilots with more experience that would move others lower in the list and they would lose or not get their advantages for a few years ahead… Looks like there is a conclusion on the horizon in this issue with Delta offering a pay hike for the pilots as a compensation. As The Atlanta Journal-Constitution published on Monday (14APR2008) “some people familiar with the matter say, Atlanta-based Delta will try to cut a deal with its 6,000 pilots, roll out the merger and then negotiate with Northwest’s 5,000 pilots afterward.

The deal could set off a series of other mergers, “rumours” say that United and Continental could be first in line and that combo would be bigger than Delta-Northwest, and analysts also say that American Airlines would probably intensify its search for a partner. “It’s a very difficult time for the industry,” Delta CEO Richard Anderson told Delta’s 50,000 workers Friday in his weekly “Right from Richard” recorded message. Roughly half are based at the carrier’s huge Atlanta hub. The airline is Georgia’s largest private employer.

The Atlanta Journal-Constitution has done a very interesting comparison in February when the Delta-Northwest tie-up was first revealed, you can read the numbers here. The new, Atlanta based merged DELTA Airlines will have an annual revenue of 35 billion USD, a fleet of more than 800 aircraft, and 75.000 employees worldwide. The new airline together with its regional partners would have a network of 390 destinations in 67 countries. “We’re announcing a transaction that is about addition, not subtraction, and combines end-to-end networks that open a world of opportunities for our customers and employees,” Anderson said.

by balint01

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