Delta Air Lines Reaches Agreement with Flight Superintendents
ATLANTA, Nov. 14, 2005 – Delta Air Lines (NYSE: DAL) said today that it has reached a comprehensive agreement with its Flight Superintendents, represented by the Professional Airline Flight Control Association (PAFCA).
The PAFCA agreement, ratified by its 171 members today, includes a 9-10% wage reduction and benefits changes similar to those being implemented across Delta’s non-pilot work groups. The new agreement becomes effective on December 1, 2005.
“We appreciate PAFCA’s good faith efforts to quickly deliver their portion of the labor savings the company needs,” said Jerry Grinstein, Delta’s chief executive officer. “Like all Delta stakeholders, we realize that these employees are once again making the tough sacrifices necessary to help save the company.”
As a part of its comprehensive business plan to successfully exit Chapter 11, Delta is seeking an additional $3 billion in annual savings by 2007. Encompassing network and operational improvements and in-court restructuring opportunities, the plan also calls for approximately $930 million annually in reduced employee labor costs. Previously announced pay cuts for all of Delta’s non-pilot work groups, including management, went into effect November 1, 2005, and, together with the savings from its Flight Superintendents, are scheduled to deliver $605 million of the employee labor savings target. To deliver the remainder, Delta is seeking $325 million in annual pilot labor savings. The company has filed an 1113 motion with the U.S. Bankruptcy Court in order to create a timeline for reaching a consensual agreement with the Air Line Pilots Association (ALPA), the union representing Delta’s pilots.
“The speed with which we are pursuing the costs savings and revenue improvements underscores the urgency and severity of our financial situation,” Grinstein remarked. “Time is of the essence.”
Delta Air Lines is the world’s second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta’s marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at delta.com.
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