Pilots sacrifice another 14% to keep Delta flying

Pilots sacrifice another 14% to keep Delta flying

ATLANTA: Pilots of bankrupt airline Delta yesterday agreed to a 14 percent pay cut to help their employer survive an expected cash crunch.

An interim agreement was signed between the airline and the Air Line Pilots Association which provides for a 14 percent cut in hourly wages of the 6,500 pilots, plus an additional 1 percent in other pay and cost items. The concessions offered by the pilots will help the airline save about $143m a year.

This is the second time in 13 months that the pilots have accepted a double digit pay cut which now takes their average salary down from $170,000 to $146,000.

The deal allows the negotiation to continue for a final agreement due by March 1. If the talks fail by that deadline, a third party panel's decision will be accepted, a pilot said.

The airline's management has appreciated yesterday's deal as it “provides much needed financial relief” until the airline and ALPA reach a comprehensive final agreement, the airline's chief executive Gerald Grinstein said.

The airline has so far lost over $11bn and announced more than 20,000 job losses. In September the airline had filed for Chapter 11 bankruptcy protection and has since been trying to boost cost savings and revenues up to $3bn which includes givebacks from its pilots totaling $325m.

The pilots, apparently hadn't agreed to the givebacks full heartedly. Of the 86 percent who voted, 42 percent did not want to give another concession to their employer, reflecting anger and disappointment over the management's failure to outline a plan to show how the employees' sacrifices were helping to protect the airline's future.

A reorganization plan was due early next month, but the carrier asked for a six months extension.

Delta ranks No.3 among U.S. commercial airlines.