Unions trying to merge seniority lists

What happened to predictions that Delta and Northwest would announce a merger a week ago? According to press reports at week’s end, the whole deal has been stalled by the failure thus far of pilots at both airlines to agree on how they will merge their seniority lists. This is always a very touchy business with the pilots, since one’s position on the list has many effects on a pilot’s job – like who draws the plum assignments, how fast they move up into the captain’s seat, etc. News reports note that getting agreement from the pilots before the two companies’ boards vote on the merger is probably a good idea. As the Atlanta Journal-Constitution put it, “They hope to avoid the messiness of the merger between US Airways and America West, which did not get pre-merger agreements from their pilots before the combined in 2005” – leading to labor problems that still affect US Airways today. Observers say they still expect the merger to happen, perhaps as soon as this week, once the pilots finally come to terms. According to various reports, pilots would get an equity stake in the combined company; the merged airline would be called Delta, and would remain based in Atlanta; and SkyTeam alliance partner Air France/KLM is likely to take an equity stake in the company as well – although not so large as to challenge the U.S. rules against foreign ownership. Most observers also expect to see announcement of a United-Continental merger soon after Delta and Northwest consummate their deal.