Delta, Northwest Pilots Sign Tentative Pact

06/24/08 - 06:19 PM EDT

Ted Reed

Meanwhile, at US Airways(LCC Quote - Cramer on LCC - Stock Picks), anger over a controversial seniority ruling following the 2005 merger with America West caused pilots to vote ALPA off the property in April. ALPA's replacement, the US Airline Pilots Association, has encountered deep resentment from former America West pilots.

The Delta and Northwest pilot agreement, if it is approved, would remove a key barrier on the path to completing the merger.

Some labor opposition remains. The largest airline union, the International Association of Machinists, opposes the deal, and the Association of Flight Attendants has expressed concerns after an organizing effort at Delta was defeated in May. A merger would likely bring a second representation election, in which about 9,000 Northwest flight attendants, currently AFA members, would be eligible to vote.

The Delta and Northwest merger was scrutinized at four separate Congressional hearings during April and May, and though some legislators raised specific concerns, widespread opposition has not materialized.

At one session, New York Sen. Chuck Schumer called the Delta and Northwest merger "a good one" and said the "negatives seem more benign" than in other transactions. Additionally, skyrocketing fuel prices seem to have sparked Congressional awareness that the airline industry must act to ensure its continued viability.

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