Delta Seeks Court Permission to Impose Concessions on Pilots

Delta Air Lines Inc. asked a bankruptcy court late Tuesday to allow it to impose $325 million in wage concessions it has been seeking from its pilots as part of its recovery efforts.

In a motion filed in U.S. Bankruptcy Court in New York, the nation's third-largest airline said it wants permission to reject its collective bargaining agreement with its 6,000 pilots. If approved, that would allow the Atlanta-based airline to impose the cuts unilaterally.

In a memo to pilots after the bankruptcy motion was filed, Delta executives said its request doesn't prevent the sides from continuing to negotiate. At the same time, the airline suggested the dollar amount of cuts it is seeking is essential.

"As we did under similar circumstances last year, we only are seeking the level of cost reductions we need," the Delta officials wrote. "Given the urgency of the company's financial situation, to rely on traditional negotiating methods that ask for more than what is needed in order to accept less would not be appropriate or feasible."

The memo was signed by Chief Financial Officer Ed Bastian; Scott Kruse, a senior legal adviser; and Gerry Carolan, a vice president of labor relations. The airline requested a hearing on the issue to be held Nov. 16.

There was no immediate comment from the union after the motion was filed.

Earlier Tuesday, union spokesman John Culp said in a recorded telephone message for pilots that Delta's decision to file the motion came after negotiations between the two sides Monday failed to reach an interim out-of-court agreement.

Culp said the union exchanged proposals with Delta, but he suggested the nation's third-largest carrier was not willing to budge from the amount of cuts it is seeking.

Delta spokeswoman Chris Kelly had said the airline still remains open to reaching an agreement with its pilots outside of court.

"But the urgency of our financial situation requires that we move forward quickly," Kelly said.

Delta's chief executive, Gerald Grinstein, had said previously that the company was willing to seek imposition of the cuts if the pilots and company can't reach an agreement on their own. The cuts Delta is seeking, as part of a new turnaround plan that includes up to 9,000 more job cuts, would be on top of $1 billion in annual concessions the pilots agreed to last year.

Delta, which has lost nearly $10 billion since January 2001, filed for Chapter 11 protection on Sept. 14. It plans to release its third-quarter earnings on Nov. 9.

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On the Net:

Company: http://www.delta.com

Union: http://www.dalpa.com

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