Anxiety rises on Delta-Northwest deal

Delta (DAL) and Northwest Airlines (NWA) still can’t get together. The carriers are close to agreeing on a merger, but plans continue to be hung up on the question of pilot seniority, The Wall Street Journal reports. Pilots at the two carriers can’t agree on a formula for determining how their ranks will be combined. The standoff, which stems from pilot anxiety about career advancement — no one wants to get stuck flying regional jets — caused top execs at the two companies to break their silence on the talks. Northwest said for the first time that it is “prepared to consider positively a transaction” that’s good for workers, investors and passengers. Delta, engaging in a bit of posturing, told workers in a memo that no “potential transaction meets all our principles” at the moment.

The waiting is making Wall Street anxious. Investors have sent shares in Delta and Northwest down 14 percent since Feb. 7, when a deal appeared imminent. Still, observers expect the merger to happen, because a combined carrier would be more robust in the face of rising energy prices and tough competition. “We will eventually get an agreement,” airline consultant Julius Maldutis tells Bloomberg television. He says that despite the problems now, he expects to see a merger announced “over the next several days.”