Delta Air Lines, the number three US major that is locked in a struggle to stave off bankruptcy, has won pilot union agreement for $1 billion in annual pay cuts through to 2009. The five-year contract calls for a 32.5% cut, effective from 1 December, and clears Delta's codeshare regionals to fly more 70-seat jets. In return, the pilots get options to buy up to 15% of Delta.
Air Line Pilots Association local chairman John Malone says: "We have bought Delta time to continue restructuring. It is now up to management to execute a viable business plan."
Delta says it must convince holders of its $20.6 billion debt to restructure terms and find more cuts to cover rising fuel costs.
Source: Flight International
