Freebrd
Well-known member
- Joined
- Jun 17, 2003
- Posts
- 2,665
Report: Delta pilots offer new concessions [font=Arial, Helvetica]By CBS MarketWatch
Last Update: 1:51 AM ET Jul 21, 2004[/font]
SAN FRANCISCO (CBS.MW) -- Delta Air Lines' pilots union offered the struggling company a new pay proposal that it says includes a 23 percent pay cut, in an effort to help stave off bankruptcy, according to published reports.
The union valued the proposal at $655 million to $705 million in annual savings. A committee representing Delta's 7,500 pilots said in a statement to the company that its new offer includes a 23 percent pay cut as well as productivity and work rule changes, the Associated Press reported late Tuesday.
The union said the proposed concessions will be contingent upon a comprehensive restructuring of all Delta's costs, the AP reported, and in exchange for the concessions, the union said it is seeking financial returns and corporate governance.
The AP reported that Delta (DAL) spokeswoman Meghan Glynn said in a telephone interview that the Atlanta-based airline wants time to study the proposal to determine for itself the value of the concessions.
Earlier this year, the pilots offered the airline a 9 percent wage cut and offered to forgo a 4.5 percent raise pilots received in May. Delta, in turn, has asked pilots for a 30 percent pay cut and to forgo the May raise. Delta has estimated the value of its proposal to be about $850 million annually, the AP reported.
On Monday, Delta reported it swung to a second-quarter loss amid higher operating costs and previously disclosed noncash charges. The nation's third-largest airline also warned that "financial pressures" are growing "heavier" by the day.
Delta reported a second-quarter loss of $1.96 billion, or $15.79 per share, compared with a profit of $184 million, or $1.40 per share, in the year-ago period. The latest quarter includes two previously announced noncash charges totaling $1.65 billion.
Reflecting the increasing risks that Delta will go bankrupt or restructure its debt out of court, Standard & Poor's lowered its corporate credit rating on the company to "CCC+" from "B-." The downgrade will make it even tougher and more expensive for Delta to raise capital. See full story.
Shares of Delta lost 54 cents, or more than 9 percent, on Tuesday to close at $5.40.
Last Update: 1:51 AM ET Jul 21, 2004[/font]
SAN FRANCISCO (CBS.MW) -- Delta Air Lines' pilots union offered the struggling company a new pay proposal that it says includes a 23 percent pay cut, in an effort to help stave off bankruptcy, according to published reports.
The union valued the proposal at $655 million to $705 million in annual savings. A committee representing Delta's 7,500 pilots said in a statement to the company that its new offer includes a 23 percent pay cut as well as productivity and work rule changes, the Associated Press reported late Tuesday.
The union said the proposed concessions will be contingent upon a comprehensive restructuring of all Delta's costs, the AP reported, and in exchange for the concessions, the union said it is seeking financial returns and corporate governance.
The AP reported that Delta (DAL) spokeswoman Meghan Glynn said in a telephone interview that the Atlanta-based airline wants time to study the proposal to determine for itself the value of the concessions.
Earlier this year, the pilots offered the airline a 9 percent wage cut and offered to forgo a 4.5 percent raise pilots received in May. Delta, in turn, has asked pilots for a 30 percent pay cut and to forgo the May raise. Delta has estimated the value of its proposal to be about $850 million annually, the AP reported.
On Monday, Delta reported it swung to a second-quarter loss amid higher operating costs and previously disclosed noncash charges. The nation's third-largest airline also warned that "financial pressures" are growing "heavier" by the day.
Delta reported a second-quarter loss of $1.96 billion, or $15.79 per share, compared with a profit of $184 million, or $1.40 per share, in the year-ago period. The latest quarter includes two previously announced noncash charges totaling $1.65 billion.
Reflecting the increasing risks that Delta will go bankrupt or restructure its debt out of court, Standard & Poor's lowered its corporate credit rating on the company to "CCC+" from "B-." The downgrade will make it even tougher and more expensive for Delta to raise capital. See full story.
Shares of Delta lost 54 cents, or more than 9 percent, on Tuesday to close at $5.40.
Last edited:
