United ponders plan B if Delta-Northwest merger talks fail
By Julie Johnsson | Tribune staff reporter
1:34 PM CST, February 22, 2008
United Airlines is exploring other strategic options as an apparent stalemate in talks between Delta Air Lines and Northwest Airlines threatens a proposed tie-up between the Chicago-based carrier and Continental Airlines, sources say.
Negotiations between United and Continental have ground to a halt while the carriers wait to see whether pilots at Delta and Northwest can resolve a deep split over seniority issues, sources say. United, meanwhile, is preparing to make another run at Delta, whose international networks and hubs would also fit well with United's assets, sources say.
One of the most contentious aspects to any airline merger, seniority affects every aspect of a pilot's working life, from wages to hours and the type of aircraft they fly. Resolving such issues can take years. If the Delta-Northwest pilots fail to break their impasse, the order of partners in the industry's merger dance could change, sources say.
United would stand little chance of merging with Continental, since Northwest holds a "golden share" that gives it the power to nix any merger between Continental and another carrier. Northwest forfeits that right if it achieves a merger of its own.
Spokespeople for United and Delta declined to comment.
In January, Delta's board considered proposals from both United and Northwest before settling on Northwest, the former employer of Delta's chief executive, Richard Anderson.
jjohnsson@tribune.com
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