Interesting Sidelights – DL/NW, Congestion Pricing, Neeleman in Brazil

DL/NW Merger Nears USA Today reported yesterday that Air France/KLM and pilots could gain a stake in the merged Delta/Northwest carrier. In addition, two sticking points, headquarters and management, have reportedly been resolved with Atlanta being the winner along with Delta CEO Richard Anderson. It will...

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DL/NW Merger Nears
USA Today reported yesterday that Air France/KLM and pilots could gain a stake in the merged Delta/Northwest carrier. In addition, two sticking points, headquarters and management, have reportedly been resolved with Atlanta being the winner along with Delta CEO Richard Anderson. It will also retain the name Delta.
Reporter Marilyn Adams said Air France would invest $1 billion in the new airline, providing a cash cushion for the new company. Pilots want a seat on the board and at least a five percent stake in the merged entity, she said, in exchange for accelerating integration, agreeing to contract terms in advance and resolving seniority issues. The two airlines have 12,000 pilots represented by the Air Line Pilots Association.
The Atlanta-Journal Constitution reported that about 2,000 Northwest pilots are senior to Delta pilots by date of hire and would likely bump Delta pilots down to regional jets, which happened at TWA when it was acquired by American. That makes protecting seniority flying privileges a key issue.

Congestion Pricing Delayed
Industry opposition to plans allowing airports to charge different landing fees based on congestion, resulted in a delay in implementation of the program, after Air Transport Association was granted a 30-day extension in the comment period. Related Story Even so, airports, said Airports Council International – North America Executive Vice President for Policy and External Affairs Deborah McElroy, are ready to implement the new policy.

Neeleman to Launch Brazilian Carrier
With plans to buy 36 Embraer ERJ 190s and dual citizenship in the U.S. and Brazil, JetBlue Founder David Neeleman, born in Brazil, expects to launch a new JetBlue-like Brazilian carrier this year, according to Sao Paolo’s daily O Estado de S. Paulo. The aircraft deal would include options for another 38. Neeleman recently acquired Cheta, a small local carrier from which he intends to launch the new airline. He already has $200 million in investments. The fledgling airline will focus on serving smaller airports rather than compete against TAM and GOL, neither of which operate the low-cost aircraft. Neeleman has the backing of financiers to invest $200 million in the venture, said the report.