Airline merger talks have stalled

NEW YORK, Feb. 27 (UPI) -- Merger discussions between Delta and Northwest Airlines have stalled due to problems between two chapters of the pilots' union.

A memo issued by Delta Air Line Inc. executives to employees indicated that merger talks hadn't arrived at a "potential transaction," The Wall Street Journal reported Wednesday.

The Air Line Pilots Association provided conceptual approval for the deal Feb 18. But now, sources told the Journal, the chapters representing Delta and Northwest pilots are having difficulty merging the two airlines' seniority lists.

Many Delta's pilots gained seniority in their own ranks after the airline filed for bankruptcy protection in 2005 and hundreds of senior pilots retired.

Based on date of hire, many of these Delta pilots would have their seniority downgraded by a merger, the report said.

On the flip side, Northwest pilots said they fear that retiring pilots within their ranks in the next five years would trap Northwest pilots in positions with lower-ranked seniority.