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Fri, Apr 14, 2006

Delta, Pilots Reach Tentative Agreement

Panel Delays Ruling On Contract

ANN REALTIME REPORTING 04.14.06 1215 EST: Talk about down to the wire. Aero-News has learned a tentative agreement has been reached on a new contract between Delta Air Lines, and its pilots union -- less than 24 hours before a federal arbitration panel was expected to rule if the bankrupt carrier could toss out its existing contract with pilots, a move that almost certainly would have resulted in a debilitating pilots strike.

The deal over pay and benefits cuts will next have to be approved by a majority of the union's 5,930-strong membership, as well as by the US Bankruptcy Court handling Delta's Chapter 11 case. No details of the agreement were released, according to USA Today.

"I'm very pleased the parties have reached a tentative agreement," the arbitration panel's chairman, Richard Bloch, told The Associated Press.

As Aero-News has reported extensively, the pilots union had threatened to strike if its contract was thrown out by Delta in order to secure $325 million in annual pay and benefit cuts, upon a decision by the federal arbitration panel. Some travelers, nervous about the possibility of Delta's continued existence over the Easter holiday weekend, had already booked travel on other carriers -- just in case.

In a memo to pilots Friday, the chairman of the union's executive committee, Lee Moak, said union leaders will meet next week to discuss the deal, and determine then whether to recommend it to the membership.

"We will not hurry," Moak said. "We will proceed in an unrushed, methodical manner."

For the moment, however, it appears Delta will live to see at least another week... but now comes the question of whether the pilots union will agree to what almost certainly are severe cuts in their pay and benefits. Of course, the alternative is to be out of a job entirely, should the pilots decide to strike.

"I was a little worried last night that my last landing in Rome was the last of my career," said Delta pilot Keith Rosenkranz, upon hearing of the tentative agreement. "I think the Delta pilots have always been willing to help the company in a time of need. We've proven that repeatedly over the years."

"But there does come a point when you have to stand up for your profession and the things that you negotiated in good faith," Rosencratz added, "and if the company is not willing to recognize that then I'm not going to vote for something that continues to take."

FMI: www.delta.com, www.alpa.org

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