Delta Loses Appeal in Battle With Flight Attendants Union

The Supreme Court today left intact a ruling that airlines say could make it more difficult for them to merge.

The court, without comment, refused to shield Delta Air Lines from binding arbitration that could lead to a monetary damages award for a flight attendants union. The case stems from Delta’s acquisition of Western Airlines in 1986.

Western agreed in 1984 that, should it merge, the Assn. of Flight Attendants would continue to represent Western employees in any newly formed company.

Delta’s flight attendants were not unionized, and Delta did not honor Western’s union contract. The union sought arbitration to retain its status as bargaining agent or to win a damage award.

A federal judge threw out the union’s complaint. But the U.S. Circuit Court of Appeals here reinstated it last July.

Airline industry groups said the appeals court decision “creates uncertainty and unpredictability” for the future of mergers.