Northwest Airlines and Delta Airlines Merger

[HuggyU2]

I jumpseated today on Delta, and the two pilots said that NWA's demands were not even close to what Delta would accept. And Delta's pilots have said they will NOT use an arbitrator. If it can't be agreed upon from the get-go, the deal's off.

 

[Flash]

I jumpseated today on Delta, and the two pilots said that NWA's demands were not even close to what Delta would accept. And Delta's pilots have said they will NOT use an arbitrator. If it can't be agreed upon from the get-go, the deal's off.

An article with some more details on the seniority battle now going on:

http://www.nytimes.com/2008/02/27/business/27pilots.html?_r=1&scp=3&sq=delta&st=nyt&oref=slogin

 

[A4sForever]

UPDATE:

PILOTS HAVEN'T MET IN A WEEK TO SETTLE DIFFERENCES OVER SENIORITY, REPORT SAYS ...

And just a point about "news" reports; this one in particular -- as many of you chase around and post links to buttress your view(s) on a variety of subjects -- as if putting up a link to what someone else "thinks" matters ... i.e., the "chairman of the Northwest union" referenced in the MarketWatch report (linked above) is not the NWA MEC Chairman. They can't even get that right. He's an LEC Chairman and has always liked attention.

Just one man's opinion ...

I just thought some of you might like to reconsider your "standard of proof" next time you "demand" a link to someone or something who doesn't know jack about the subject at hand ... you know, just to prove your own point. :icon_wink

Hope this makes sense. If it doesn't, who cares?

Just my $20 worth ... :sleep_125

 

[whitesoxnation]

Like I said from the get-go:

AIRLINE SHARES FALL AS DELTA-NWA DEAL LOOKS "STALLED"

Does this mean more pilots will retire, like what happend before with AA

 

[A4sForever]

Does this mean more pilots will retire, like what happend before with AA

Probably not -- 'cause the pension changed for the guys currently onboard from a defined benefit to a defined contribution model. Big difference.

 

[A4sForever]

UPDATE:

DELTA CFO Says Merger w/ NWA "Not Required" ... TheStreet.com

 

[A4sForever]

UPDATE 5 MAR 2008:

REPORT THAT DELTA-NWA PILOTS UNIONS "STILL SPEAKING" SPARKS OPTIMISM

 

[Nose]

Well, after a few years of on and off merger talks between Northwest Airlines and Delta Airlines, it appears that both sides have reached a deal. Delta Airlines will retain the name and has a one year plan for a complete merge. There has not yet been an official announcement, however I have had a reliable "inside source" say that the announcement will be made Friday morning. Also, Continental Airlines and United Airlines have entered merger talks as well.

How is your "reliable source" doing now?

Both sides met last week for a second time. Nothing.

 

[A4sForever]

Update

UPDATE from MarketWatch dtd 5:43 PM ET Mar 17, 2008:

DELTA, NORTHWEST PILOTS CAN'T REACH DEAL: report

 

[Huggy Bear]

Also in the news,

Delta is cutting 2000 (non-pilot) jobs. United is looking to make cuts also.

 

[A4sForever]

Also in the news,

Delta is cutting 2000 (non-pilot) jobs. United is looking to make cuts also.

Roger that ... and it potentially gets even steeper. They've offered early-out's to more than 1/2 of their workforce.

MarketWatch report, [FONT=verdana,arial,helvetica]10:50:31 AM ET 3/18/2008 :[/FONT]

DELTA OFFERING 30,000 WORKERS VOLUNTARY SEVERANCE, report

 

[A4sForever]

A better link to tie in w/ what Huggy said:

DELTA TO CUT WORKFORCE, FLEET TO OFFSET FUEL COSTS, ECONOMY

 

[EvilGN]

keep in mind they are NOT trying to lay off 30k people, they are offering the early out to 30k hoping 2k will take the deal

 

[A4sForever]

keep in mind they are NOT trying to lay off 30k people, they are offering the early out to 30k hoping 2k will take the deal

Well ... here's the deal as I see it.

What you say is true as far as it goes, for Delta could not meet their flying schedule if over 1/2 of their current work force took early retirement. They are "hoping" to get max response from the early-out offer --- just like they did with the pilots and the lump sum early-out offer of the past couple years before the pilots' pension plan was killed.

If they don't get the reductions in numbers they want, the hammer will fall and the cutbacks will go to at least the 2000 number they want that ARE going to go, one way or another -- probably mid-lower management types for starters. And while the management suite offers the sop that there will be "NO INVOLUNTARY FURLOUGHS" ... they're not ruling out NOT replacing attrition, retirements, or cutting part-timers. And remember, any announcements right now are management double-speak for "let's keep our market share and not put out bad news until we get our act together".

Management strategically lies. They will do whatever's necessary to reduce the payroll and preserve their OWN piece of the pie. That's the plain, simple truth.

A couple of weeks ago .. the Delta CEO said something to the effect that a merger w/ NWA was "not necessary" for the survival of Delta. And now that prospects for a NWA merger look dimmer, DAL announces "new" reductions in force that will be implemented to offset rising fuel costs. Kinda reminds me of last week when the Bears-Sterns CEO Swartz was in denial when he said that Bears-Sterns was in great shape and had "no liquidity" problems.

Translation: Delta's RIF is probably transparent (for now) as far as it goes ... but without the NWA merger or another in its place, more severe cost-cutting measures will have to be taken at DAL. The 2000 warm bodies that they WILL cut represents the tip of the furlough iceberg if something (i.e., a merger) does not fall into place to save Delta from its past sins.

Right now, the near future all depends on the cost of a barrel of oil ....

 

[FrankTheTank]

future all depends on the cost of a barrel of oil

Spot on as always! On a side note, anyone notice Deasel is a little more than 4 bucks a gallon.. The whole transportation/shipping industry is in for some rocky roads ahead!