General Lee
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Associated Press
Delta Pilots: Concessions Deal Not Near
Thursday September 2, 5:14 pm ET
By Harry R. Weber, AP Business Writer Delta Pilots Say Concessions Agreement Is Not 'Imminent,' Both Sides Will Continue to Meet
ATLANTA (AP) -- Delta Air Lines Inc.'s pilots union said Thursday there is no agreement expected in the near future with the struggling carrier over concessions, although both sides will continue to meet.
In a memo to pilots, union spokesman Chris Renkel said rumors of "round-the-clock" talks and an "imminent" tentative agreement are unfounded.
"Our union needs your help in not perpetuating this type of crew room gossip," Renkel told pilots.
Renkel said "work group" meetings continued this week between the pilots union's negotiating committee and management to discuss technical aspects of scheduling and work rule concessions. The meetings are expected to continue next week, he said.
There has been some progress in those areas, Renkel said without elaborating. Union spokeswoman Karen Miller said she had nothing to add, and Delta spokeswoman Peggy Estes said she had no information on possible movement in the negotiations.
Delta, the nation's third-largest airline, has warned about the possibility of bankruptcy without deep wage cuts from its pilots. The company is seeking $1 billion in concessions; the union has offered up to $705 million.
Meanwhile, Delta said it will outline details of its closely guarded restructuring plan at a meeting Wednesday that will be broadcast on the Internet.
Chief executive Gerald Grinstein will announce the initial phase of the Atlanta-based carrier's strategic review, the company said Thursday. Details were not provided.
Delta also is seeking to restructure its more than $20 billion in debt.
The airline has extended until next Thursday, the day after Grinstein's Webcast, a deadline for creditors to respond to a request by Delta to give it more flexibility in restructuring its debt. Some creditors have refused to consent to the request without more information on the turnaround plan.
A few details of Delta's turnaround plan have already been released.
Earlier this summer, Grinstein told employees Delta plans to seek new markets, domestically and internationally, and new customers either alone or in a partnership. In addition, the airline will look to leverage assets and to deploy them in more profitable ways, he said.
Last month, Grinstein said the airline plans more job cuts, though he did not say how many. Delta already has reduced its work force by 16,000 since the 2001 terrorist attacks. As of June 30, the company and subsidiaries employed 70,300.
Some analysts believe Delta's turnaround plan could include other drastic changes, including shedding money-losing leisure routes and smaller hubs, like Salt Lake City, and concentrating operations on its large hubs, longer distance business markets and international routes where it may be able to maintain a revenue premium. Delta shares rose 16 cents to close at $4.12 Thursday on the New York Stock Exchange.
Bye Bye--General Lee
Delta Pilots: Concessions Deal Not Near
Thursday September 2, 5:14 pm ET
By Harry R. Weber, AP Business Writer Delta Pilots Say Concessions Agreement Is Not 'Imminent,' Both Sides Will Continue to Meet
ATLANTA (AP) -- Delta Air Lines Inc.'s pilots union said Thursday there is no agreement expected in the near future with the struggling carrier over concessions, although both sides will continue to meet.
In a memo to pilots, union spokesman Chris Renkel said rumors of "round-the-clock" talks and an "imminent" tentative agreement are unfounded.
"Our union needs your help in not perpetuating this type of crew room gossip," Renkel told pilots.
Renkel said "work group" meetings continued this week between the pilots union's negotiating committee and management to discuss technical aspects of scheduling and work rule concessions. The meetings are expected to continue next week, he said.
There has been some progress in those areas, Renkel said without elaborating. Union spokeswoman Karen Miller said she had nothing to add, and Delta spokeswoman Peggy Estes said she had no information on possible movement in the negotiations.
Delta, the nation's third-largest airline, has warned about the possibility of bankruptcy without deep wage cuts from its pilots. The company is seeking $1 billion in concessions; the union has offered up to $705 million.
Meanwhile, Delta said it will outline details of its closely guarded restructuring plan at a meeting Wednesday that will be broadcast on the Internet.
Chief executive Gerald Grinstein will announce the initial phase of the Atlanta-based carrier's strategic review, the company said Thursday. Details were not provided.
Delta also is seeking to restructure its more than $20 billion in debt.
The airline has extended until next Thursday, the day after Grinstein's Webcast, a deadline for creditors to respond to a request by Delta to give it more flexibility in restructuring its debt. Some creditors have refused to consent to the request without more information on the turnaround plan.
A few details of Delta's turnaround plan have already been released.
Earlier this summer, Grinstein told employees Delta plans to seek new markets, domestically and internationally, and new customers either alone or in a partnership. In addition, the airline will look to leverage assets and to deploy them in more profitable ways, he said.
Last month, Grinstein said the airline plans more job cuts, though he did not say how many. Delta already has reduced its work force by 16,000 since the 2001 terrorist attacks. As of June 30, the company and subsidiaries employed 70,300.
Some analysts believe Delta's turnaround plan could include other drastic changes, including shedding money-losing leisure routes and smaller hubs, like Salt Lake City, and concentrating operations on its large hubs, longer distance business markets and international routes where it may be able to maintain a revenue premium. Delta shares rose 16 cents to close at $4.12 Thursday on the New York Stock Exchange.
Bye Bye--General Lee
