Delta Air Lines reaches tentative contract agreement with its pilots

Airline Industry Information, Oct 28, 2004

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

Delta Air Lines has reached a tentative concessions agreement with its pilots which could save the airline from going into bankruptcy.

The deal was agreed on 27 October 2004 but details of the proposal have been withheld until the Air Line Pilots Association has had a chance to review it. Negotiations have been ongoing for 15 months and it is unclear whether the USD1bn in concessions that Delta Air Lines said it needs is included.

Ratification from union members is the last major hurdle facing the deal but if it is recommended by union officials it has a good chance of passing. Delta Air Lines was thought to be preparing to file for bankruptcy before the end of October 2004 but in the last few days has secured USD600m in funding from American Express subject to a deal being struck with the pilots' union, reports The Associated Press.

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