Business

Delta-Northwest combination fails so far
by Zuzana Zelenakova

Delta Air Lines, Inc. is an United States airline that covers extensive domestic and international network. It flies to over 332 destinations in 57 countries and across 5 continents. It is ranked as the second largest airline in the world as far as number of passengers carried is concerned. In January, 2008 it was reported that the company held merger talks with Northwest Airlines and United Airlines. Atlanta-based carrier picked Northwest Airlines for further talks. Both carriers are still recovering from bankruptcy. A potential combination transaction that would meet Delta's expectations has not been reached yet. The thing is the pilots unions were not able to achieve an agreement over an integrating seniority lists. Other conditions such as that the combined airline would be called Delta or the headquarters in Atlanta have been already met except for this one. Delta's executives announced in the memo: "Rest assured that we will not complete a transaction unless all of these conditions are met. We have a strong stand-alone plan. We will maintain our attention on executing the plan while we continue to look at strategic alternatives." The question of pilot integration have certainly threatened the negotiations but both sides are still involved despite the public silence in recent days. Airline experts and insiders have always been skeptic about this partnership given the state of both companies. "Two airlines in bankruptcy do not make one profitable airline outside of bankruptcy," said Mike Miller, partner with aviation consulting firm the Velocity Group. But let's wait and see..

related story: http://news.yahoo.com/s/ap/20080226/ap_on_bi_ge/delta_northwest;_ylt=AgCZkZ.lBwHJoHbhFjc1xtes0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 9:08 AM