ATA asks pilots for more concessions
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By Ted Evanoff
[email protected]
December 29, 2004
ATA Airlines pilots will vote to cut pay by $6 million in total over the next four months, the pilots' union said this afternoon.
Union officials said the vote may begin Thursday.
The bankrupt airline sought the concession as a way to cut expenses while it continues operations and forms a plan to come out of bankruptcy next summer.
It would be the second set of concessions for the Indianapolis carrier's 1,100 pilots. In late June, the pilots eliminated an annual pay increase. The latest package would cut pay, change some work rules and reduce ATA pension contributions by half.
The new package would be in place for 120 days, giving airline and union negotiators time to work out a permanent contract.
ATA negotiated the cutbacks with the master executive council of the Air Line Pilots Association, which announced the tentative concessions this afternoon.
A typical Boeing 737 pilot with six years' experience at ATA can earn up to about $159,000 a year.
A bankruptcy court in Indianapolis last week approved a complicated ATA bail out plan. It would shift six ATA gates at Chicago Midway to Southwest Airlines.
The Dallas carrier in turn would inject $117 million into ATA and eventually own a 27.5 percent stake in the smaller airline.
http://www.indystar.com/images/clear.if
http://www.indystar.com/images/clear.gif
By Ted Evanoff
[email protected]
December 29, 2004
ATA Airlines pilots will vote to cut pay by $6 million in total over the next four months, the pilots' union said this afternoon.
Union officials said the vote may begin Thursday.
The bankrupt airline sought the concession as a way to cut expenses while it continues operations and forms a plan to come out of bankruptcy next summer.
It would be the second set of concessions for the Indianapolis carrier's 1,100 pilots. In late June, the pilots eliminated an annual pay increase. The latest package would cut pay, change some work rules and reduce ATA pension contributions by half.
The new package would be in place for 120 days, giving airline and union negotiators time to work out a permanent contract.
ATA negotiated the cutbacks with the master executive council of the Air Line Pilots Association, which announced the tentative concessions this afternoon.
A typical Boeing 737 pilot with six years' experience at ATA can earn up to about $159,000 a year.
A bankruptcy court in Indianapolis last week approved a complicated ATA bail out plan. It would shift six ATA gates at Chicago Midway to Southwest Airlines.
The Dallas carrier in turn would inject $117 million into ATA and eventually own a 27.5 percent stake in the smaller airline.
, in mind. One part of the package, furloughs out of seniority, didn't pass the MEC. There's no way it would have passed the membership. We expect some more negotiations in the near future, but they shouldn't waste their time until there's a new team in charge.
