"With that in mind," AP adds, "pilots were in line to get raises. But the two groups couldn't agree on seniority, which determines who flies more desirable aircraft and routes." Now, it sounds as though pilots could lose out after failing to reach a deal. The Wall Street Journal (subscription required) says a "jumpstarted deal" without a prior agreement "may not include the salary enhancements previously foreseen." The New York Times (free registration) writes "merging without the approval of pilots could anger the airlines' most powerful work group and make it difficult to run a combined airline efficiently. But the threat might help push the pilots back into negotiations."

Delta has previously said it would not proceed with a merger unless it had a prior pact from each side's pilots. "Basically, unless Delta management has a change of heart, I don't think they're going to do anything without the support of their pilots," Calyon Securities analyst Ray Neidl tells Reuters. "It shows that people don't want it to die and they'll keep trying things, but I don't think it puts us any closer." The Atlanta Journal-Constitution (free registration) writes "one senior Delta pilot, who asked not to be named, forecast a rough future for a combined airline. Angry pilots who are bypassed will sue, he predicted." Stay tuned.