Fred Business News - Northwest Airlines Corp. has proposed to Delta that the airlines move ahead with their combination without a prearranged deal with pilots, a person with direct knowledge of the situation said on Friday.

The person, who asked not to be named because of the sensitivity of the situation, said Delta Air Lines Inc.  hasn't rejected the idea.

Neither airline would comment on the development, but Delta said in a statement that it supports "industry consolidation as a vehicle to ensure Delta remains an industry leader." It said it is continuing to look at strategic alternatives.

The usual approach in airline combinations has been to have pilots work out a joint union contract afterward. Delta and Northwest took a different approach in their merger talks, figuring that if they could obtain full pilot agreements in advance they would reap the benefit of a combined airline much sooner.

With that in mind, 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, the rising cost of oil has put all airlines under intense financial pressure. Since the talks began, Delta and Northwest have announced plans to reduce capacity this year, and Atlanta-based Delta has announced plans to eliminate 2,000 jobs.