A particularly thorny issue for Delta Air Lines Inc. in its talks with United Airlines and Northwest Airlines about a combination with one of the carriers is where the merged company would be based and what it would be called, industry observers say.In recent months, Delta executives have spoken in near absolute terms about their desire and intention of keeping the Delta name and the headquarters in Atlanta. But aviation experts say such certainties are hard to achieve in complex negotiations that often involve competing interests.
"This is a business of egos," said Robert Mann, a Port Washington, N.Y.-based airline consultant. "While lots of things get negotiated, some of the toughest to negotiate are those sorts of issues that go with what it's going to be called, where it's going to be headquartered, and who is going to run it."
Delta spokeswoman Betsy Talton reiterated Monday that Delta's board is analyzing strategic options, including potential consolidation transactions, but she declined to provide any update on the process or address the name and headquarters location issues.
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