=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2008/01/22/BUBCUJ20K.= DTL --------------------------------------------------------------------- Tuesday, January 22, 2008 (SF Chronicle) Headquarters, name complicate talks with Delta/United, Northwest may have t= o soothe executives' egos Harry R. Weber, Associated Press (01-22) 04:00 PST Atlanta -- A particularly thorny issue for Delta Air Lines Inc. in its talks with United Airlines and Northwest Airlines about a combination with one of the carriers is where the merged company would be based and what it would be called, industry observers say. In recent months, Delta executives have spoken in near absolute terms about their desire and intention of keeping the Delta name and the headquarters in Atlanta. But aviation experts say such certainties are hard to achieve in complex negotiations that often involve competing interests. "This is a business of egos," said Robert Mann, an airline consultant in Port Washington, N.Y. "While lots of things get negotiated, some of the toughest to negotiate are those sorts of issues that go with what it's going to be called, where it's going to be headquartered, and who is going to run it." Delta spokeswoman Betsy Talton declined Monday to provide any update on possible transactions or address the name and headquarters location issues. Northwest Airlines Corp. officials are likely just as eager to see any combination they are involved in keep the Northwest name and the company based in Eagan, Minn., as United officials would probably want to keep the United name and keep its parent company, UAL Corp., based in Chicago. In Northwest's case, Minnesota Gov. Tim Pawlenty pointed out last week in a letter to the chief executives of Northwest and Delta that Northwest has made financial commitments to keep its headquarters and a hub in Minnesota. Northwest would give up $215 million in financial incentives at the airport between now and 2020 if it moves its headquarters out of Minnesota. The clock is ticking to get any deals accomplished quickly, some observe= rs say. That is because industry observers believe a combination has a better chance of surmounting the considerable political and regulatory hurdles under the current administration than whatever might follow it. But Mann said he thinks the airlines will take their time. "I don't think it's going to happen soon because of the nature of not on= ly the individual negotiations, but also the need to game out what will be the competitive responses," Mann said. Terry Trippler, a Minneapolis airline expert, said one possible scenario he envisions is a combination where the two airlines maintain their separate names and keep their headquarters cities as operational hubs, but have one board of directors located in one city. Morton Pierce, a mergers and acquisitions expert with the law firm Dewey= & LeBoeuf, said that in these types of negotiations, one side can demand whatever it wants. But, he added, "If you want to get a deal done, there is give-and-take a= nd compromise." --------------------------------------------------------------= -------- Copyright 2008 SF Chronicle <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".