Northwest and Delta pilots' impasse delays chance of deal

ByABC News
February 21, 2008, 2:39 AM

— -- Three sources briefed on merger deliberations said the boards of both companies are in a holding pattern, giving pilots more time to reach agreement.

The sources spoke on condition of anonymity because they are not authorized to comment publicly.

One of the sources said Sunday or Monday would be "the next window of opportunity" for announcing a merger.

In return for an equity stake in the combined airline, representatives of pilots at each airline have been attempting to work out in advance the rules for working together.

Some signs pointed to the possibility of board approval of a merger on Wednesday night, but the inability of the pilot groups to work out differences prevented that.

The two pilots' groups both part of the Air Line Pilots Association reached a stalemate Wednesday over the issue of seniority. That is a core issue because it determines what planes they fly, their pay rates, career advancement and work schedules.

"We want any seniority list integration to be fair to pilots at the top, middle and bottom of the list," said Greg Rizzuto, a spokesman for the Northwest branch of ALPA. "A pilot's career is tied completely to his or her seniority ranking. A short-term economic benefit is not worth sacrificing the possibility of advancement."

Northwest pilot negotiators worry that under terms offered by their union counterparts at Delta, nearly all of the current Northwest pilots would in a few years be blocked from advancement to higher-paid positions flying the largest jets.

The imbalance would result from the fact that hundreds of senior Delta pilots took early retirement before the company filed Chapter 11 bankruptcy in 2005.

At the same time, most of Northwest's senior pilots remained in their jobs.

As a result, most of Delta's pilots today are junior to Northwest's most senior pilots. But as those senior Northwest pilots reach retirement over the next several years, Delta pilots would have the inside track on top-paying jobs as captains of the largest jetliners.

Contributing: Marilyn Adams