INDIANAPOLIS (AP) -- ATA Airlines and pilots union officials have reached a tentative agreement to extend wage concessions to help the bankrupt airline stay in business.
Union members have yet to vote on the proposal, which the company announced in a statement e-mailed to media outlets Wednesday.
ATA Pilot Erik Engdahl, who heads the Air Line Pilots Association local representing ATA's 900 pilots, confirmed the agreement.
In its statement, ATA said the deal would extend for four months the concessions approved by pilots in February. The deal also includes a timeframe for negotiations on a long-term agreement, the statement said.
ATA flight crew members in February voted to approve 120 days of across-the-board wage reductions and reduced contributions to retirement accounts to help the struggling airline save as much as $12 million.
Indianapolis-based ATA, which is owned by ATA Holdings Corp., filed for Chapter 11 bankruptcy protection in October.
Since then, it has entered into a business alliance with Southwest Airlines, including a passenger-sharing agreement which has grown to 45 destinations. It also has sold its Chicago Express commuter airline and announced plans to auction its profitable Ambassadair Travel Club to raise cash.
ATA was scheduled to present its reorganization plan this week at a hearing in U.S. Bankruptcy Court in Indianapolis, but has requested a delay until Aug. 22.
