22 March 2008

Delta and Northwest - it ain't over till the fat lady sings

And she is still eating.

The news reports out of both MSP and ATL are very confusing. DL pilots exec is saying "Non" but their rank and file is not so sure. NW pilots say yes but only on their terms. The key issue is pilot seniority.

Breaking with objectivity here - I think it is dead because DL has not waited for the outcome to get on with their lives. Atlanta is offering severance to over 30,000 staff. With Delta's need for additional pilots already acute even the reduction in domestic flying is only going to delay the inevitable. There are more pilots needed.

This merger remains a bad idea. I cannot see it coming right. Frankly Wall Street has shown its ineptitude of late and therefore its push for this should be viewed in the context of a quick win for the traders and bottom feeders and bad news for the long term viability of the company (ok the 2 of them).

No comments: