Delta and Northwest could announce a combination as early as today that would create the world’s biggest airline, but pilot contract issues still loomed and there was no guarantee the deal would move ahead, three people familiar with the talks said.
The people, who spoke on condition of anonymity on Sunday because of the sensitivity of the situation, said officials were mobilizing for an announcement provided the boards of the two companies give final approval to a deal.
The boards of both companies have been having ongoing merger-related conversations. They were likely to meet yesterday, a person familiar with the talks said.
It was increasingly likely the two airlines would proceed without a prearranged seniority integration agreement between their pilots unions, making one of the main issues whether pilots would accept a merger.
Leaders of Northwest’s pilot union leaders issued a memo to rank-and-file pilots on Sunday saying that they would oppose any merger that does not keep the interests of Northwest pilots “at the forefront of the decision-making process.” The union leaders, who met in Minnesota, said any combination had to involve “fair and equitable seniority list integration.” It also remains unclear whether Delta pilots would be willing to make changes to their contract to give Delta more flexibility after a combination, one of the people said.
Delta may be willing to give incentives to Delta pilots to alter their contract, another person familiar with the talks said.
The changes being sought are related to the scope section in the Delta pilot contract, which in part spells out what planes pilots fly and what routes they fly, people familiar with the talks said.
Any changes to the contract, including financial incentives, would apply to only Delta pilots since their contract only governs that airline’s pilots. Northwest pilots have a separate contract.
A memo sent Friday from Delta’s pilots union to its members said union leaders were meeting in special session in Atlanta. It did not say what they were discussing. That meeting continued on Sunday, people familiar with the talks said.
The usual approach in airline combinations has been to have pilots work out a joint union contract after a deal is announced.
Atlanta-based Delta Air Lines Inc and Eagan, Minnesota-based Northwest Airlines Corp took a different approach in their talks for months, figuring that if they could obtain full pilot agreements in advance they would reap the benefit of a combined airline much sooner.
With that in mind, pilots were in line to get raises and equity in the combined company. But the two groups could not agree on seniority, which determines who flies more desirable aircraft and routes.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS