Northwest proposes retooling Delta merger plan By MarketWatch Last update: 2:54 p.m. EDT March 28, 2008 Print E-mail RSS Disable Live Quotes SAN FRANCISCO (MarketWatch) - Northwest Airlines Corp., seeking to salvage its planned merger with Delta Air Lines Inc., has taken aim at one of the deal's biggest stumbling blocks; the pilots. The Wall Street Journal, citing people familiar the matter, reported Friday that Northwest executives have proposed pushing ahead with the merger, but trimming the terms offered to the pilots. Northwest (NWA: northwest airls corp com News, chart, profile, more Last: 8.87+0.41+4.85% 3:28pm 03/28/2008 Delayed quote data Add to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: NWA 8.87, +0.41, +4.9%) shares surged 6.5% to $9 on the report while Delta (DAL: delta air lines inc del com new News, chart, profile, more Last: 8.66+0.31+3.71% 3:28pm 03/28/2008 Delayed quote data Add to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: DAL 8.66, +0.31, +3.7%) shares jumped 4.3% to $8.71. Initially, both airlines had been keen to win their pilots' approval before proceeding with the merger. But union officials representing the two groups have been at loggerheads for weeks, unable to reach a compromise on seniority issues that include pay scales and who gets to fly which routes. They have even squabbled over the types of aircraft they might be forced to fly in a merged company. With the pilots refusing to budge, Northwest and Delta have seen the initial pop in their share prices from the proposed merger whittled slowly away, with soaring fuel costs adding urgency to the companies' efforts to bring costs under control and reduce what most industry analysts see as a surplus of available seats. The two airlines are also under pressure to nail down a merger and win regulatory approval for it before the end of the year, assuming that the current administration is likely to be more friendly to further consolidation in the industry than the next administrations might be. Combining Northwest and Delta would create the world's biggest airline in terms of traffic. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 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".