Delta Air Lines pilots begin voting on concessions deal

Airline Industry Information, Nov 1, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Delta Air Lines pilots have started voting on a new concessions deal which could save the beleaguered airline from going into bankruptcy.

Under the new agreement pilots would have their salaries, which range from around USD100,000 to USD300,000 a year, cut by a third and no pay raise for at least five years. Delta Air Lines was looking for USD1bn in concessions from its pilots which it claims would give it space to avoid bankruptcy.

Voting is expected to close on 11 November 2004 with a simple majority vote needed for the agreement to be ratified. If the vote goes Delta Air Lines' way then the 32.5% pay cut would come into force on 1 December 2004. In return for the cuts pilots will be able to buy up to 15% of the airline's stock, reports The Associated Press.

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