Delta, ALPA Reach a Tentative Interim Agreement
ATLANTA, Dec. 11, 2005 – Delta Air Lines, Inc. confirmed today that it has reached a tentative interim agreement with the Air Line Pilots Association, International (ALPA), the collective bargaining representative of the company’s more than 6,000 pilots.
Subject to pilot ratification by no later than December 28, 2005, the tentative interim agreement provides for a 14 percent hourly wage reduction and reductions in other pilot pay and cost items equivalent to approximately an additional one percent hourly wage reduction. The interim cost reductions would be effective December 15, 2005 and would remain in effect while the parties seek to reach a comprehensive agreement. The company and ALPA would seek to negotiate a tentative comprehensive agreement by March 1, 2006, with pilot membership ratification by March 22, 2006.
“This agreement reflects the resolve of Delta people to work together to help save the company. We recognize and appreciate the additional sacrifice this will represent,” said Ed Bastian, Delta’s chief financial officer.
Delta and ALPA will request that the Bankruptcy Court suspend the hearing on the company’s motion to reject the existing Delta-ALPA collective bargaining agreement pursuant to section 1113 of the U.S. Bankruptcy Code, pending the ratification process for the tentative interim agreement.
Delta has said that achieving additional annual pilot labor cost reductions is an important element of its restructuring plan. The restructuring plan calls for an additional $3 billion in annual cost reductions and revenue improvements to be realized by the end of 2007. The $3 billion improvement target is in addition to the approximately $5 billion in annual financial benefits the company says it is on track to deliver by the end of 2006, as compared to 2002.
Delta Air Lines (OTC: DALRQ) 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 505 destinations in 93 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.
This press release contains various forward-looking statements which represent the company’s estimates or expectations regarding future events. All forward-looking statements involve a number of risks and uncertainties that could cause the actual results to differ materially from the projected results. Additional information is contained in Delta’s Securities and Exchange Commission filings, including its Form 10-Q filed with the SEC on November 14, 2005. Caution should be taken not to place undue reliance on Delta’s forward-looking statements, which represent Delta’s views only as of the date of this presentation, and which Delta has no current intention to update.
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- Delta Air Lines, Inc.
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