Delta: Can't Say Whether Can Stop Strike

The nation's third-largest carrier said it believes a strike by its 6,000 pilots would be illegal, but at the same time it warned that it doesn't know if it would be able to get a court order to stop it.

Delta Air Lines Inc. said Monday it can't predict whether it will be able to prevent or stop a strike if its pilots choose to walk off the job should their contract be thrown out in bankruptcy court.

The nation's third-largest carrier said in its quarterly report to the Securities and Exchange Commission that it believes a strike by its 6,000 pilots would be illegal, but at the same time it warned that it doesn't know if it would be able to get a court order to stop it.

"In addition, if we or our affiliates are unable to reach agreement with any of our unionized work groups on future negotiations regarding terms of their collective bargaining agreements, or if additional segments of our work force become unionized, we may be subject to work interruptions or stoppages," Delta said.

Delta's pilots, who are represented by the Air Line Pilots Association, have raised the prospect of a strike if the court rejects their contract. A bankruptcy court hearing in New York is set for Wednesday to discuss Delta's request to reject the pilot contract. The pilots plan a rally for Tuesday to defend their contract.

If the contract is rejected, Delta could impose $325 million in concessions it is seeking from its pilots, who have offered $90.7 million in average annual concessions over four years.

The cuts would be on top of $1 billion in annual concessions the pilots agreed to in a five-year deal reached in 2004. That deal included a 32.5 percent pay cut.

In Monday's SEC filing, Delta also said it can't predict whether its defined benefit pension plan will continue when it emerges from Chapter 11. Delta pilots have tried without success to get the company to continue making certain contributions to the pension plan during the bankruptcy case.

Delta estimates that its funding requirements under its defined benefit pension plan are roughly $3.4 billion between 2006-2008. The cash-strapped airline said it may be required to fully fund required contributions at the time it exits bankruptcy if it decides to keep the plan going.

Delta, which filed for Chapter 11 on Sept. 14, has recorded losses of more than $11 billion since January 2001 and over that period has announced that it would cut up to 33,000 jobs. Its loss in the third quarter, reported Thursday, was $1.13 billion.

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On the Net:

Delta Air Lines Inc.: http://www.delta.com

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