Ted Reed
CHARLOTTE, N.C. -- In a positive sign for the proposed merger between Delta(DAL Quote - Cramer on DAL - Stock Picks) and Northwest(NWA Quote - Cramer on NWA - Stock Picks), Delta and pilots at the two airlines said they have made a tentative deal on a joint contract.
Their agreement, which covers both contract terms and seniority integration, is subject to ratification by members of the Air Line Pilots Association at both carriers. Delta expects the merger to close this year, though it still requires regulatory approval. "Achieving a joint contract and combined seniority list in advance of the closing of the merger is something that has never been done in this industry and is a testament to the leadership of ALPA and a working-together culture," said Delta CEO Richard Anderson in a prepared statement. The three-party negotiations began June 16 "and continued almost around the clock" until an agreement was reached Monday. In a prepared statement, Delta pilots called the agreement "the first important step in the process of combining two pilot groups with long, proud histories into the largest unified pilot group in the world." Delta has about 7,000 pilots, while Northwest has around 5,100. Northwest pilot leaders stressed that approval is still needed by the working pilots. "The teams have made significant progress, resulting in a tentative agreement," said Monty Montgomery, vice chairman of the Northwest ALPA chapter, said in a prepared statement. "However, the merger must now have the support of both pilot groups." While it cannot prevent an airline merger, pilot seniority integration can be a major impediment to workplace harmony following one. At Northwest, for instance, resentment lingers over pilot seniority integration following a 1986 merger with Republic, while at Delta, some current and former pilots remain angry over a 1987 combination with Western.
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