Delta, Nortwest merger

Delta Air Lines Inc. may reach a merger agreement with Northwest Airlines Corp. that would form the world’s largest carrier.
To made the merger, labor suport is crusial. There has been case where the merger has cause problem in labor integration. Each labor union are now studying the proposed combination.
Delta, based in Atlanta, is the third-biggest U.S. carrier by miles flown by paying passengers, while Northwest is No. 5. The airlines. Last Year, Delta’s pilot union helped derail a hostile takeover bid by US Airways Group Inc by rallyinor pilot seniority is critical, because it helps determine pay, work schedules and the size of aircraft they fly. Pilots can’t take seniority with them if they move to another carrier. The job losses and seniority issues will be a problem in a merger.
Currently U.S. carriers are studying mergers in response to rising fuel prices and concern that demand may slow because of recession.
Delta and Northwest previously filed for bankruptcy protection on Sept. 14, 2005, and exited in 2007.

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