They're probably looking at what's happening with Northwest and Delta and probably realizing they have to get their contract cost structure down as well.

Operating two products under the same name has never worked. They've learned a lot from operating a low cost product and now in bankruptcy they can incorporate that into their main line product.

Northwest probably serves more unique markets, even though it's smaller than Delta, ... Secondly, the Northwest union is renegade, with small membership and it's not a member of the AFL-CIO. Delta-ALPA is in the same situation.

Any amount of savings at this point is desperately needed by the airlines. With the tremendous pressures on airlines, this is one of few areas where they can actually reduce costs. With online purchasing of tickets, more and more channels are becoming available for consumers. If travel agents go out of business, it'll make the system more efficient. It's a hard statement to make, but it's true.

They can get so much more productivity without a third party acting as an intermediary. The unions will probably get the right to hold a vote, but I think there's a good chance Delta will keep the unions out. Last time there was a vote by mechanics, to my surprise it was overwhelmingly voted down.

Peace at any prices appears to be a necessity. I won't say it's a good deal, but it's a necessity.