Delta, pilots reach tentative deal
By Harry R. Weber
Associated Press
ATLANTA — Delta Air Lines' pilots union said late yesterday that it had reached a tentative agreement on concessions that could save the struggling carrier from bankruptcy.
John Bazemore • Associated Press
Union spokeswoman Karen Miller said the deal came after 15 months of negotiations that intensified in recent days. She said the union would review the agreement, but would not provide details for now.
Delta Air Lines pilots will vote soon on a tentative agreement on concessions long sought by the airline as it tries to avoid bankruptcy.
Atlanta-based Delta had said it would have to seek bankruptcy protection if it didn't get $1 billion in concessions from its 7,000 pilots. Miller would not say if the tentative agreement met that goal.
The nation's third-largest airline was expected to decide by yesterday whether to seek Chapter 11 protection from creditors. It said that could be delayed if the airline and pilots' union reached an agreement. A Delta spokeswoman said last night that no decision had been made. She declined to elaborate.
The deal must be ratified by rank-and-file pilots, which could take several days.
Tuesday was Delta's self-imposed deadline for debtholders to respond early to an exchange offer intended to give the airline breathing room. The deadline came and went without any word from Delta on its progress.
Delta had offered to exchange $680 million of its debt with new notes secured by $1.2 billion worth of debt-free aircraft, flight simulators and flight training equipment. The offer was made to holders of $2.6 billion in various forms of Delta debt.
Earlier this month, Delta extended a debt-exchange offer to Nov. 18, but said it would give some creditors a better deal if they agreed to the terms by Tuesday. Delta has warned that its debts could force it into bankruptcy, even if its unions agree to big concessions.
Delta has lost more than $6 billion since early 2001, during which time it has also cut 16,000 jobs. Delta plans to cut up to another 7,000 jobs in the next 18 months.
