By Mark McSherry
NEW YORK (Reuters) - Executives of Delta Air Lines Inc (DAL.N: Quote, Profile, Research) hope to win over Northwest Airlines Corp (NWA.N: Quote, Profile, Research) pilots, who oppose Delta's bid to buy Northwest for more than $3 billion to create the world's biggest airline by traffic.
While Delta pilots would get a 3.5 percent equity stake in the new airline, and support the all-stock deal, the leaders of Northwest's pilots said Monday night the union will use "all resources available to aggressively oppose" it after the two unions could not agree on how to work under one seniority umbrella.
Seniority determines when pilots work, what they fly and how much they get paid. Some analysts said the opposition of the Northwest pilots could pose a serious threat to the deal.
The proposed deal comes as major U.S. carriers try to counter skyrocketing fuel prices and a weak domestic economy.
Delta Chief Executive Richard Anderson said on Tuesday the carrier aims to fully integrate its two pilots' groups as soon as possible.
At a press conference in New York, Delta executive vice president Mike Campbell said the airlines had eight or nine months to get the Northwest pilots on board.
"If we succeed in that, it will be revolutionary, and it will be a game changer," said Campbell.
In an interview on NBC television, Anderson said that before the deal closes, he wants to have an agreement with pilots from both airlines. Continued...
Logan International Airport

Rival United States airlines Delta Air Lines and Northwest Airlines announced today that they have agreed to merge. The new airline, which will use the Delta name, will be the largest commercial airline in the world.

Technically, Delta will be buying Northwest in a roughly US$3 billion deal. Northwest shareholders will receive 1.25 shares of Delta for each share of Northwest. Based on Monday's closing prices on the New York Stock Exhange this represents a 17% premium for Northwest shareholders.

Richard Anderson, the Delta chief executive officer who will also head the new company, said: "We said we would only enter into a consolidation transaction if it was right for all of our constituencies; Delta and Northwest are a perfect fit. Today, we’re announcing a transaction that is about addition, not subtraction, and combines end-to-end networks that open a world of opportunities for our customers and employees. We believe by partnering with our employees, including providing equity to U.S.-based employees of Delta and Northwest, this combination is off to the right start."

The combined company would have $35 billion in annual revenue and approximately 75,000 employees. The deal does have to receive regulatory approval. "We will look at the competitive effects of the transaction and how it would affect consumers," said Gina Talanoma, a spokesperson for the United States Department of Justice.

Airline industry consultant Robert Mann told Reuters, "It's a very optimistic view on an industry that's been very dismal for the last couple of weeks."