Delta (DAL) And Northwest (NWA) Pilots Talk Again

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By Douglas A. McIntyre Published
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Late word is that Delta (NYSE: DAL) and Northwest (NYSE: NWA) pilots have re-started talks about seniority in a combined airline. Failure of negotiations helped kill earlier merger talks between the airlines.

According to Bloomberg, "The sessions were the first between the airlines’ work groups since negotiators failed to agree two weeks ago on how to combine the seniority rankings of 12,000 pilots."

The news may actually be bad for NWA and DAL shareholders. It is not clear that merging two airlines benefits shareholders. Fuel costs stay at present level. Labor costs often go up as groups including pilots look for ways to improve contracts with the new company.

Customer service virtually always deteriorates sending consumers to other airlines. Revenue erosion becomes a real possibility.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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