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Tue, Sep 14, 2004

Delta: Light At The End Of The Tunnel?

Grinstein "Hopeful" After Talks With Pilots

Okay, here's the bad news: Delta airlines executives are meeting with bankruptcy lawyers.

Now here's the good news: The airline says there's a glimmer of hope in talks with its holdout pilots, the best paid flight crews in the business.

Just after announcing the struggling airline -- America's number-three carrier -- would lay off up to 7,000 employees, CEO Gerald Grinstein said he's now "hopeful" he can reach a deal with the pilots "by the end of the week."

The "tone" of the discussions is reportedly what fueled Grinstein's optimism, according to Reuters.

And yet, as if to dangle a sword over the negotiations, Grinstein sent managers to talk with the lawyers about filing Chapter 11 bankruptcy.

"We want to be prepared in the event we have to file," Delta spokesman Dan Lewis told Reuters. "We are doing what is prudent."

FMI: www.delta.com

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