Pilots at Delta Air Lines ratify concessions deal

Airline Industry Information, Nov 12, 2004

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

Delta Air Lines has received a welcome show of support from its pilots after they voted in favour of a new deal which could save the airline up to USD1bn in annual wage concessions.

The airline is struggling to avoid bankruptcy and has been in negotiations with the pilots' union for months. The new deal calls for the 7,000 pilots to take a 32.5% pay cut beginning on 1 December 2004. The pilots' union announced on 10 November 2004 that 79% of pilots supported the new contract.

Delta Air Lines now hopes that the ratified deal will help it secure financing and persuade creditors to renegotiate its USD20bn debt. John Malone, chairman of the union's executive council, said that the pilots were left with no choice in the matter and that they either accepted the deal or faced seeing the airline go out of business, reports The Associated Press.

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