Could Merges affect flight attendant hiring?

Delta Airlines, Northwest Airlines merger talks progressing
Source: Supply Chain Exec

Date :07/02/2008 01:32:17

Talks about a merger between the two airlines are progressing, say sources, and a deal may be announced soon.

It is reported that the airlines may clinch the landmark accord as early as the middle of this month, but sources cautioned that negotiations could still stall or even collapse.

In their discussions the carriers, two of the world’s largest, have reached a point of settling leadership.

Richard Anderson, Delta chief executive, would remain head, while Doug Steenland, Northwest chief executive, would remain part of a senior team that would include executives from both airlines, the people said.

Terms of the deal

The two airlines are still thought to be discussing the terms of the deal, where they still need to find common ground, including the ration ratio at which Northwest investors will exchange their shares for those in the new company.

There are also no assurances that any of the concessions either side have made will be part of a final agreement, should there be one, the Financial Times said.

Northwest declined to comment on Wednesday. A Delta spokeswoman said: “Delta’s board is working with management to analyse strategic options, including potential consolidation transactions, to ensure Delta maintains its leadership position.”

Combinations

A Delta-Northwest combination could spur other mergers in the industry, in particular negotiations between Continental Airlines and United Airlines.

With strong Pacific routes, a big Chicago hub and a large market share on the West Coast, United would complement Continental, which has big hubs in Houston and Newark and gets more of its revenue from international flights than any other big domestic carrier.

Continental’s chief executive, Larry Kellner, has said that he would prefer not to merge with another airline but that should there be a merger of two other big airlines, he would have to consider following suit to avoid being dwarfed.

Conversely, Glenn F. Tilton, United’s chief executive, has been vocal about wanting to merge with another carrier; sources said it appeared he would be willing to step aside as top officer in such a combination.

Delta and Northwest are about to make the announcement as soon as the pilot's from both airlines agree to the merger terms. This could affect the flight attendant hiring. Delta could possibly be putting their flight attendant hiring on hold until the merger is announced and goes through. This is all speculation, but it seems like there are several people who I know are waiting to hear from Delta and haven't heard anything yet.