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TUESDAY FEBRUARY 19
Sky Captains And World Of Tomorrow The Old Testament prophesied that the world’s takeover would begin with the skies. Okay, that is total malarkey. But it’s not going to stop us from getting excited about the Delta-Northwest merger-of-behemoths that, according to press snitches, just moved one step closer to fruition. Hopefully, this brings us one step closer to selling our now-gathering-dust idea for interstellar double-wide airplanes with swank bars, dance floors and sound-proof sleeping cars. Hey, it could happen. February 2008The boards of Delta and Northwest have both scheduled emergency board meetings for Tuesday where the deal, which would reshape the airline industry, could be approved, these people said. Still, these people cautioned that several outstanding issues still needed to be resolved — including reaching an agreement with the pilots’ unions — and that the negotiations could be delayed or collapse altogether. If a deal is reached, it would end months of speculation about a combination of Delta and Northwest, which would create the world’s largest airline. Such a merger would also probably spur more consolidation: United Airlines and Continental Airlines also have been holding merger discussions and are likely to announce their own deal. United and Continental are eager to announce their merger soon after any Delta-Northwest tie-up, so that regulators can look at both deals at the same time. A softening economy and high fuel prices have convinced many in the industry that carriers must pursue the cost cuts available through mergers to avoid sinking back into the financial problems they have struggled to overcome. Most major domestic airlines reported losses in the fourth quarter. Northwest lost $8 million and Delta $70 million. But any deals might face Congressional opposition because of the probability of lost jobs and higher fares as combined carriers cut back flights and seats.
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