Delta Airlines

Delta and Northwest are close to a deal that would create the world's largest airline and jump start what is expected to be the industry's biggest consolidation wave in decades. The long-awaited pact between Delta Air Lines Inc., the nation's third-largest airline, and No. 5 Northwest Airlines Corp. could come as early as today if there is an agreement by the pilots union for a common contract.

Pilots for Delta and Northwest were still negotiating the terms of a labor contract late Wednesday, delaying plans to sign a deal that would create the world's largest airline. Directors for Delta Air Lines Inc., the nation's third-largest carrier, and No. 5 Northwest Airlines Corp. had been expected to vote Wednesday on a combination if a pilot deal had been reached. But a spokesman for Northwest's chapter of the Air Line Pilots Assn.

Delta Air Lines Inc., in talks to combine with Northwest Airlines Corp., said Tuesday that several conditions must be met before it agrees to a merger, and no potential transaction qualifies "to date." The Delta name and Atlanta headquarters must be preserved, and workers' seniority and pensions must be protected, Chief Executive Richard Anderson and Chief Financial Officer Ed Bastian told employees.

Delta Air Lines Inc. is considering a proposal from Northwest Airlines Corp. to push ahead on a merger even without a labor agreement between their pilot unions, people familiar with the matter said Friday. The new approach may include a smaller pay package for pilots, said the people, who declined to be identified because the talks were private. The carriers must reassess how their tie-up would work as soaring jet-fuel costs and lower demand have wiped out projected profits, the people said.

Delta Air Lines Inc. and its pilots agreed in principle Friday on a contract that would clear the way for a merger with Northwest Airlines Corp. to create the world's largest carrier, people familiar with the talks said. An accord would raise pilots' pay and give them an equity stake in the combined airline, which would keep Delta's name and Atlanta headquarters, said the sources, who requested anonymity. Some terms are still being negotiated, two of the people said.

Delta and Northwest could announce a combination as early as Tuesday that would create the world's biggest airline, three people familiar with the talks said Sunday, though pilot contract issues still loomed and there was no guarantee the deal would move ahead. The people, who spoke on condition of anonymity because of the sensitivity of the situation, said officials were mobilizing for an announcement provided the boards of the two companies give final approval to a deal.

Delta Air Lines, struggling with high fuel costs, plans to slash about 13% of its flights at Los Angeles International Airport, including nonstop service to Boston, Hartford, Conn., and Columbus, Ohio, according to a national flight database. The latest cuts would be the deepest so far at LAX, which had managed to escape the brunt of an industrywide move to ground flights as a way to cope with escalating fuel prices. Delta is the fourth-largest carrier at the airport.

Wi-Fi is heading skyward. Delta Air Lines Inc. announced Tuesday that it would begin offering the service -- for a fee -- on its domestic flights this fall. The airline expects to outfit 330 planes by next summer, making it the first major U.S. carrier to offer Wi-Fi on its entire domestic fleet (not including regional subsidiaries such as its Comair service).

Delta Air Lines Inc. and Northwest Airlines Corp. shareholders gave the go-ahead Thursday to a combination that would create the world's biggest carrier, deciding that in their volatile industry they liked their chances better together than on their own. The stock-swap deal announced April 14 still requires Justice Department approval. One other potential hurdle is a federal lawsuit seeking to block the deal that is set for trial Nov. 5 in San Francisco.

Hiking airfares and adding fees bolstered revenue for two of the nation's largest carriers, but high fuel costs continued to wipe away earnings for American Airlines and Delta Air Lines Inc. Both carriers posted operating losses in the third quarter when oil prices remained high. Even with recent declines in the price of jet fuel, the airlines are bracing for a downturn in air travel that could keep them from making any profit.