Investors rudely greet Delta-Northwest merger deal

[Omaha Steve]

http://www.chron.com/disp/story.mpl/headline/biz/5700762.html

April 15, 2008, 4:43PM

Seniority issue in proposed merger with Delta could lead to labor unrest

Associated Press

Delta and Northwest executives want to smoothly complete their deal to create the world's largest airline by the end of the year. But investors reacted negatively today, amid word there are no plans for further domestic flight cuts as well as the challenges of integrating companies with contrasting cultures, planes and labor relations.

The two airlines have very different relationships between management and workers, which was reflected as soon as the deal was announced Monday. Delta pilots support it. Northwest pilots oppose it. Fifteen minutes after the announcement, the union representing many Northwest ground workers pledged to fight it.

Northwest is heavily unionized, while Delta's pilots are the only major work group at Delta to be part of a union. Delta flight attendants begin voting April 23 whether to join a union.

"Sometimes, they're a little overly optimistic," industry expert Terry Trippler said of the airlines' executives.

Airline consultant Darryl Jenkins acknowledged that there will be challenges, but he believes the deal will go through.

"For all practical purposes, this deal is done," Jenkins said. "The things that would derail this deal are all regulatory, and I think this is one of the easier deals to sign off on that I've ever seen."

FULL story at link.