In a significant move, Northwest Airlines and Delta Airlines have combined forces. According to the joint contract agreement reached by the pilots of both the airlines, pilots for Northwest Airlines are to receive a 2.4 percent equity stake in Delta Air Lines. This has been stated by the summary of the agreement. Yet another feature of the agreement calls for a raise for pilots amounting to not less than 18% over the period of four years.

However, before the agreement becomes final, the pilots of both Delta and Northwest need to approve the collective bargaining agreement. Pilots of both the airlines agreed to abide by the binding arbitration that would enable producing an integrated pilot seniority list provided they are individually not able to arrive at a seniority agreement within a given period of time. Notably, pilot seniority impacts their schedule and the aircraft they fly in addition to protection against layoffs.

Delta hopes to acquire Northwest by the end of this year. Significant during a time when the fuel prices are soaring, the combination is expected to give way to the largest carrier in the world. Both the regulators and shareholders need to sign the proposed agreement.

An official of the Delta pilots' union noted, "We believe that given the financial and industry environment in which we find ourselves, this agreement provides significant gains for the Delta pilots. Additionally, it positions Delta to make significant competitive strides in the coming years, especially in international markets."