Delta-Northwest Deal Could Be in Jeopardy

Updated from 4:31 p.m. EST

CHARLOTTE, N.C. -- The proposed merger between Delta(DAL Quote) and Northwest (NWA Quote) faces a potential collapse, sources say, for an unusual reason -- Northwest's pilots want to arbitrate seniority.

Delta pilots oppose arbitration, which was shown in the 2005 merger between US Airways (LCC Quote) and America West to be an unreliable method to protect pilots from severe career disruptions.

In the effort to merge Delta and Northwest, "there is a solution still to be had," said a person familiar with the situation. "The door is still open, but not forever. If Delta passes its time line, it will just move on." The window of opportunity is a couple of weeks, the person said. ...