November 14, 2003
Delta Air Lines' pilot union, which is in talks with the airline over cuts to the pilots' industry-leading pay, have given Delta a counterproposal and said talks would continue next week.
Delta, the No. 3 US airline, posted a USD$164 million net loss for its most recent quarter and blamed lofty pilot costs for its inability to cut enough expenses in response to the travel slump.
Last month, the Atlanta-based airline proposed mid-contract changes in its labor agreement with the pilots, which Delta said puts it at a USD$1 billion per-year disadvantage to its rivals.
An Air Lines Pilots Association spokesman said the union "had frank discussions about Delta's current situation" on Thursday, but the union did not disclose the nature or extent of its counterproposal.
"It is an absolute necessity for us to reduce the gap between pilot costs here at Delta in comparison to the other airlines, in order to be competitive," Delta spokeswoman Peggy Estes said. She said the airline would evaluate the pilots' proposal.
Nearly every major airline has recently secured wage and benefit cuts from employees to stave off bankruptcy, and business travelers continue to shun the high fares that once sparked profits for the sector.
American Airlines, the No. 1 US carrier, narrowly avoided bankruptcy earlier this year after it extracted USD$660 million in annual wage and benefit concessions from its unionized pilots.
Delta pilots' current contract was sealed in early 2001, before the September 11 attacks and economic downturn battered the airline sector. The agreement is not amendable until May 2005.
The pilots' union said it expected to receive a counter proposal from Delta on Tuesday, at the next meeting between the two parties.
(Reuters)
Rather interesting news... Any thoughts on what the neighborhood numbers are?
Delta Air Lines' pilot union, which is in talks with the airline over cuts to the pilots' industry-leading pay, have given Delta a counterproposal and said talks would continue next week.
Delta, the No. 3 US airline, posted a USD$164 million net loss for its most recent quarter and blamed lofty pilot costs for its inability to cut enough expenses in response to the travel slump.
Last month, the Atlanta-based airline proposed mid-contract changes in its labor agreement with the pilots, which Delta said puts it at a USD$1 billion per-year disadvantage to its rivals.
An Air Lines Pilots Association spokesman said the union "had frank discussions about Delta's current situation" on Thursday, but the union did not disclose the nature or extent of its counterproposal.
"It is an absolute necessity for us to reduce the gap between pilot costs here at Delta in comparison to the other airlines, in order to be competitive," Delta spokeswoman Peggy Estes said. She said the airline would evaluate the pilots' proposal.
Nearly every major airline has recently secured wage and benefit cuts from employees to stave off bankruptcy, and business travelers continue to shun the high fares that once sparked profits for the sector.
American Airlines, the No. 1 US carrier, narrowly avoided bankruptcy earlier this year after it extracted USD$660 million in annual wage and benefit concessions from its unionized pilots.
Delta pilots' current contract was sealed in early 2001, before the September 11 attacks and economic downturn battered the airline sector. The agreement is not amendable until May 2005.
The pilots' union said it expected to receive a counter proposal from Delta on Tuesday, at the next meeting between the two parties.
(Reuters)
Rather interesting news... Any thoughts on what the neighborhood numbers are?
