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Fri, Nov 18, 2005

Harsh Words Exchanged In Delta Court Case

ALPA Threatens Strike If Contract Tossed

It's official: in opening remarks Wednesday, Delta Air Lines asked a US Bankruptcy Court judge to void its contract with Delta's pilots' union, in hopes the $325 million the carrier hopes to save by slashing its collective bargaining agreements with pilots will help the carrier emerge from Chapter 11.

Delta lawyer Jack Gallagher said the airline valued its pilots, and has tried to negotiate reductions -- something the pilots weren't willing to do, according to the airline.

"The need is $325 million of cash. That is what our investment bankers tell us. That's what our creditor committee tells us," Gallagher said to the Associated Press. "ALPA is fervently urging the court to say it isn't so. We're telling them it is so. We wish we didn't need $325 million of cash. But the need is real."

The Air Line Pilot's Association has offered Delta $90.7 million in concessions, and has threatened to strike if the judge grants the carrier's request -- a potentially illegal move Delta has called an act of "murder-suicide" that could potentially force the carrier to close its doors.

ALPA lawyer Bruce Simon maintains pilots have given up enough to Delta, including $1 billion in concessions last year.

"The fact of the matter is in that labor negotiations both sides understand that labor strife is counterproductive," Simon said. "Pilots don't strike for the hell of it. They don't needlessly place their employer in dire jeopardy."

US Judge Prudence Carter Beatty actively questioned lawyers on both sides, but had harsh words for Delta's position that the company deserves the same considerations as other bankrupt carriers.

"I say you're throwing darts at the pilots because they're smaller than you are and you think you can stomp on them. That may or may not be true," Beatty told Gallagher. "I don't think this matter will be resolved until I hear what the pilots have to say and what you have to say."

Delta was quick to rebuke Beatty's comments.

"I think the one thing we agree on is that we have a deep respect for the pilots," said Delta spokesman Dan Lewis. "But this is not about respect. This is a financial issue."

FMI: www.delta.com

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