Delta Air Lines willing to use bankruptcy court to impose pilot cuts
October 06, 2005 11:43 AM EDT
ATLANTA - Delta Air Lines Inc. is prepared to use the bankruptcy court to achieve $325 million (euro269 million) in cost concessions from its pilots if the company and union can't reach a deal on their own, chief executive Gerald Grinstein said Thursday.
Grinstein made the comment after announcing the third largest U.S. airline's plans to launch nonstop service from its Atlanta base to Tel Aviv in March.
On Sept. 22, eight days after filing for bankruptcy, Delta said it is targeting $930 million (euro771 million) in annual savings from its employees, including $325 million (euro269.5 million) from pilots. The cuts are part of a new turnaround plan that will shed up to 9,000 more jobs.
Unlike Delta's other work groups, the pilots union has to agree to its cuts or have the cuts imposed on the union in bankruptcy court.
Asked Thursday if Delta is prepared to use the courts to get the cuts it is seeking from pilots, Grinstein told The Associated Press, "Yes."
Grinstein said the union so far has been unwilling to negotiate the cuts with the company.
"We've asked them, but they've not been willing to consent," Grinstein said.
He said the union has asked for certain information to help it make its decision, which the company has been providing.
"I don't want to prejudge what they are going to do," Grinstein said.
He added that from the company's standpoint, time is essential to get the cuts.
"Time is a real pressure on us," he said.
A year ago, the union agreed to $1 billion in annual concessions to help Delta avoid bankruptcy at that time. But fuel prices soared, and Delta was forced to file for bankruptcy reorganization anyway.
October 06, 2005 11:43 AM EDT
ATLANTA - Delta Air Lines Inc. is prepared to use the bankruptcy court to achieve $325 million (euro269 million) in cost concessions from its pilots if the company and union can't reach a deal on their own, chief executive Gerald Grinstein said Thursday.
Grinstein made the comment after announcing the third largest U.S. airline's plans to launch nonstop service from its Atlanta base to Tel Aviv in March.
On Sept. 22, eight days after filing for bankruptcy, Delta said it is targeting $930 million (euro771 million) in annual savings from its employees, including $325 million (euro269.5 million) from pilots. The cuts are part of a new turnaround plan that will shed up to 9,000 more jobs.
Unlike Delta's other work groups, the pilots union has to agree to its cuts or have the cuts imposed on the union in bankruptcy court.
Asked Thursday if Delta is prepared to use the courts to get the cuts it is seeking from pilots, Grinstein told The Associated Press, "Yes."
Grinstein said the union so far has been unwilling to negotiate the cuts with the company.
"We've asked them, but they've not been willing to consent," Grinstein said.
He said the union has asked for certain information to help it make its decision, which the company has been providing.
"I don't want to prejudge what they are going to do," Grinstein said.
He added that from the company's standpoint, time is essential to get the cuts.
"Time is a real pressure on us," he said.
A year ago, the union agreed to $1 billion in annual concessions to help Delta avoid bankruptcy at that time. But fuel prices soared, and Delta was forced to file for bankruptcy reorganization anyway.