Filed under: Deals, Engagements

Who would have imagined that the Delta (NYSE: DAL) merger with Northwest (NYSE: NWA), which was announced yesterday, could be scuttled by a merger of Continental (NYSE: CAL) and United (NASDAQ: UAUA)?

Most Wall St. observers believed that the unions were the largest barrier to the Delta deal. The pilots have not given the marriage their imprimatur. The captains may be able to injured the merger by threatening a strike which could shut down the new carrier. Regulatory questions could be the other roadblock, but, as Reuters points out, “While the U.S. Justice Department is expected to work carefully, the agency’s track record on consolidation favors approval.”

If the airlines can solve their labor issues, the merger, meant to offset the rise in fuel prices and fall in passenger revenue, is apt to happen.

Read the rest of the story at 24/7 Wall St.

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This entry was posted on Monday, May 5th, 2008 at 1:14 am and is filed under Engagements and Deals News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.