Pilots Union Begins Testimony in Comair Bankruptcy Case to Reject Labor Contract

The union representing Comair pilots testified Wednesday that pilots narrowly ratified a January agreement that contained terms more favorable to the company than those in the proposal now before a bankruptcy court.

The Air Line Pilots Association opened its defense against rejection of its labor contract, part of the company's effort to emerge from bankruptcy protection alongside its parent Delta Air Lines Inc.

Cory Tennen, the lead labor negotiator for ALPA, testified that pilots narrowly approved a January agreement for $17.3 million in annual concessions under threat from Comair that Delta would shut it down.

"Company negotiators repeatedly stated that if they did not get the $17.3 million, the company would simply shut down," said Tennen, a captain who flies 70-seat aircraft for Comair.

He said the threat of closure convinced ALPA it should allow the 1,500 Comair pilots to vote on the concessions deal, which was approved by a small margin.

The January agreement was negotiated in November and December of last year.

But the company is seeking court permission for less harsh cuts now because the earlier deal was derailed by a delay in negotiations with flight attendants.

The average annual salary for Comair pilots is $58,800.

The union further argues that Comair now projects it will be profitable this year, without implementing any of the concessions it sought earlier, making unnecessary further cuts.

"Congress did not pass Section 1113 (governing rejection of labor contracts) to give a debtor more bargaining leverage so that it can get a deal that makes it even more profitable for its parent than it already it," according to a court document filed by ALPA before the hearing.

The two sides disagree on five major points related to savings estimates from proposed concessions. Among those is the level of savings that could be reached by eliminating the pilots' defined contribution retirement plan.

Comair seeks the cuts as part of a $3 billion restructuring plan pursued by Delta, the nation's No. 3 airline, which is based in Atlanta.

ALPA said in a court document that it expected negotiations to continue, even if U.S. Bankruptcy Court Judge Adlai Hardin granted the motion, since the company would prefer a consensual agreement for the sake of labor relations.

A few pilots sat through the third day of the proceedings, which were scheduled to continue Thursday and Friday. A total of four pilots were scheduled to testify.

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